In the 60s when the wages were high and inflation high as well?
Very expectable, it was common place for people in their early 20 to be able to afford homes, and it was seen as very good that was the case
High interest rates (especially above inflation) create an incentive to save money, and keep property prices low. The higher borrowing costs keep the bid prices of property down, and the positive real interest rate means people don't need to speculate on assets like real estate to save their money.
That said, a new house from the 60's is very different from a new house today.
The things that come to mind:
Much larger kitchen space.
Shared bathroom vs every bedroom has a bathroom plus half bath for guests.
Major code differences for electrical.
But it still feels wrong to say that this isn't a concern and to dismiss it with that argument, since people still need entry-level options, even if we tout the new bells and whistles we've added to the houses or vehicles over the past few decades.
Saying "housing prices are ridiculous" followed by, "but you get more features!" is no consolation to the family looking to get their foot in the door of the housing market.