Regardless of any competitive or status-based desires, income relative to your neighbours (everyone in your city) is a big part of actual purchasing power.
In most cities, housing prices are based on land value, not construction costs. And land value is entirely based on demand: what your neighbours are willing to pay for the same lot.
And most services are priced based on the salaries of your neighbours - the more you earn relative to them, the more of their time you can afford.
In most cities, housing prices are based on land value, not construction costs. And land value is entirely based on demand: what your neighbours are willing to pay for the same lot.
And most services are priced based on the salaries of your neighbours - the more you earn relative to them, the more of their time you can afford.