Are we completely insane?

We found ourselves wondering whether we are totally nuts when we had the following conversation with a bemused parent:

Parent: "So, you guys are thinking about buying something in downtown Manhattan?"
Us: "Yep."
Parent: "How much would that cost?"
Us: "Around $750,000 for a 1BR."
Parent: "How big would that be?"
Us: "Around 750 sq ft"
Parent: "That's the size of our kitchen."