[luckylion]

I said it's not just about wealth. Yes, if both a millionaire and an average salaried employee spend 30% of their income, the millionaire will always get the house. But they don't compete for the same real estate. Instead, the average person competes with others grouped around the average, and 30% vs 15% of income is a significant difference. If you really, really want to live in the prime location, you can, you just have to spend more.

> Secondly, why is the merit of high income more valuable than waiting in the line for longest time?

Because it correlates with useful stuff being done for society. Not perfectly, of course, but somewhat. Waiting doesn't at all. And it's usually not about "waiting", it's often about being part of some group, having the luck of the draw, knowing someone in the office that assigns priorities, or "inheriting" the right to live in some (publicly owned) flat from your parents.

What happens then? Person A lives in a very desirable place, person B does not, and person B has to subsidize A's flat.