Do the materials used in building a house have any effect on the price of the house?

While thinking on this question, it had me thinking that today’s houses use a lot of prefab, composite, or cheaper made materials in them. Doing rehabs one learns that the materials used today or often not as well-made as those of the past. Many of the cabinets are made of particle board, some other laminate, etc. and also premade in modular form wither you would piece together the kitchen, etc. you wanted. You would not really have a cabinet maker who would construct your cabinet to be a custom fit to the kitchen, made right on site, and out of real solid would, sanded and stained. Most baseboard is composite, finding solid wood baseboard like there use to be is special order and very expensive. Same with doors, you want a solid wood door it will cost you 3 times or more in cost than the less expensive hollow core doors. As materials get cheaper, in cost and construction, house prices tend to go up. If builders used natural real materials, would the price of the house really be that much more in actual construction cost? Logic, to me, says you should get a larger home for less seeing the materials are cheaper in actual cost than having natural quality stuff. Maybe they builders can’t cut cost because of labor?