I think you’re in a situation that a lot, though certainly not a majority, of people in your demographic.
You’re not foolish with your money, and therefor you have not spent more than you should like everyone else, yet you’re wondering why those seemingly making less than you can afford a lifestyle you can’t.
Truth is they probably can’t afford it either. Material possesions are no indication of wealth. On the contrarythey most likely mean nothing more than debt.
I’m in a similar situation, and all I can do is wait it out. In doing so I’m starting to realize renting isn’t such a bad deal.
Prices will come down, and the longer it takes the more you will be making by the time they do.