For REAL songs about REAL life, there is only one person - the late Dory Previn (one-time wife and musical collaborator of Andre Previn.)
I think all her original LPs are available on CD, often 2 LPs on one CD so good value. Probably the best introduction to her though, is her Live in Carnegie Hall concert, as it has songs from many albums.
She is too 'real' for some people, dealing with emotions, minorities, incest, religion, war, and show business.
Someone else from the '70s era, still performing and writing today is Pete Atkin: he writes the music, to lyrics by Clive James (yes, THE Clive James). He is also a BBC radio Producer. A good introduction to them is their Live in Australia double CD, with songs, anecdotes, Clive's poems etc. The stocks of their CDs were destroyed in the London riots, a few years ago (in the Sony warehouse I think).
Their current material is available ONLY from:
www.peteatkin.com/hillshop.htm
Amazingly, it looks like CDs, including double, are only £5, with £2 postage for the first, +50p for each subsequent one.
"Beware of the Beautiful Stranger" is on YouTube, one of their 'classics'.