Housing prices are going up regardless of land availability. In a smaller Midwestern city I visited this summer, there is essentially unlimited land in all directions from the city center - it is just farm fields. Regardless, the new construction they build is still priced 50% more than the exact same homes would have cost just 8 years ago, or about triple what they would cost in late 90's. You can verify this on sites like Zillow.

$8 / hour was the 'retail' wage back in the 90's in this area, and now maybe it has gone up to $14. I would imagine the professional salary has gone up even less - it has certainly not tripled from 1998.

Housing has far surpassed the rate of wage increases even in areas where land is not constrained. It has far more to do with interest rates and the monthly payment.