Those who like their current homes will stay in them. Those who think the 300$ house is a good idea will use them.
Whats the problem? name any product and I can find an argument on the side of nobody choosing to use it.
I, for one, have a use for a 300$ house. I have a piece of land on which I would love to be able to place a few smaller cabins. Currently doing so would run me around 15-50k per building.