The USA is big.

Some places have lots of space. Those areas tend to be inexpensive. You can build big sprawling 5 bathroom houses there for low prices. If you want to have lots of space in a smaller town, remote or rural area where there is not much going on, that is easy to do.

Manhattan (and NYC) is comparatively small and very crowded. That makes it more expensive. Living in a city is a choice, and you accept that you are going to live in a smaller space in exchange for living in an extremely vibrant place.

That is a tradeoff many of us happily accept.

For those that want 5 bathrooms and 3 garages and 4000 square feet of housing, there are plenty of other places.