This sentence is telling: "Sure, he lives in a great 3,000 sq.ft house that only costs $500/month." You've discounted the value of that house. You forgot that

This sentence is telling: "Sure, he lives in a great 3,000 sq.ft house that only costs $500/month." You've discounted the value of that house. You forgot that the house might be on more than an acre of land, with a stream and some forest. Your comparison isn't equivalent at all. Add some land, and suddenly you aren't coming out ahead. You can't even pay your bills.