What the heck do all these other people do?

My wife and I are moving from our lovely home in Hopkinton, MA (anyone want to buy a house?) to the NY Metro area. We are starting to settle on NJ as our landing place. In looking at houses though, I can't believe what you can't get for the kind of money I am willing and able to play. I like to think that I am doing pretty well for a guy in his mid-thirties. According to the government, I am in the top 2% of wage-earners, but when I look at what these houses cost, I have to wonder - what the hell do these people do for a living or how did they get their money?

I am not trying to live in Manhattan. Pretty much, my commute is going to be an hour to get to mid-town. Yes, I am looking at houses in areas with good schools. I think I must be doing something wrong.