In Half Moon Bay, Ca a 1,275 sq ft house on 5,000 sq ft lot cost $600,000 ...and is 35 years old. How about an 1,100 sq ft Condo for $425,000 ...and 15 years old. A nice new house is $1,500,000 for 4br 2ba on 7,500 sq st lot.
Hey! You can rent a room for $750/month.
edit: PS: If you have been in the house for 30 years your total real estate taxes are about $1,200 per year. Thanks to Prop #13.