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I've spent hours this weekend looking at Florida RE and I could sell my old sbox wooden house here and trade it for a mansion there. Came across a 2 bed 2 bath home built in a golfing estate in '05 for $104k while there is another in the same complex almost identical advertised @ $216...

Yes it does work. It's important to borrow to buy the new house BEFORE you blow your credit rating by returning your keys for the old one though. I read lately that there is a tax cost because the repayments avoided/forgiven is considered taxable. A VERY knowledgable RE guy said that, not me. :)

America is not a "socialist" nation so they must make do. Many are living in cars. You can't just assume they are "consuming" housing.