I bet 30 years ago she begged her daddy for a pony too; doesn’t mean she got it.
Look, she married all of you, the entire package. She knew how much money you made and approx. how much money you were going to make during your married life together short of winning the lotto or some unforeseen circumstances. If she loves you and was serious about this marriage she would not risk everything for a posh neighborhood. How much have you two really talked about this and looked at the numbers closely? Like others have mentioned, if you haven’t already, do this with her and show her it doesn’t make financial sense. If you’ve already done this and she is still pressuring you then I don’t know what to say. I see financial decisions in a marriage to be unanimous only and if you both don’t agree on buying a home like that then you just don’t buy it, period! Figure out what you can afford and agree on and hopefully you’ll get more house by waiting it out over the next couple of years.
By the way, this is coming from a woman. Ahem, a woman who does have common sense and a rational brain inside her head. I swear some of the men on this board must have really had some bad relationships in the past. We’re not ALL like that.