I enjoy model railroading and have a small HO layout currently. I have not paid much attention to the market for a while, but the costs are definitely quite a bit higher, but if you can work with the raw materials, that can keep costs down.
HO freight cars are getting ridiculous. Granted they are beautifully detailed and painted, but $20-40 for a single car is a bit much for most pocketbooks. A modest 25 car train can cost up to $1000, excluding locomotives. Digital Command Control is the big thing as well now. Fantastic for operations, but again, pony up a few hundred dollars just to get started.