And here's yet another step: most other markets aren't as resource-constrained as housing is. If the Yankees win the world series and more people want Yankees caps, manufacturers can just make more. Demand goes up, supply goes up, everybody's happy.
Housing, at least in the USA, often doesn't work like this. The population grows and more people want to live in place X and the current NIMBY occupants of place X go to the government to make sure more housing can't appear in place X. The current occupants make some arguments about neighborhood character that are really about preserving their own lives and investments and another family goes to a worse district or a worse house or no house at all.
Housing is a unique investment category, pretending it's like everything else is disingenuous.
I agree that housing is a complicated market with a lot of varying factors. It never really fits a simple model that people like to package it in. Each market is regional with some national/international overlays and its tied to the economic power of that market. It is impacted by policies both economic, financial and political.
Housing, at least in the USA, often doesn't work like this. The population grows and more people want to live in place X and the current NIMBY occupants of place X go to the government to make sure more housing can't appear in place X. The current occupants make some arguments about neighborhood character that are really about preserving their own lives and investments and another family goes to a worse district or a worse house or no house at all.
Housing is a unique investment category, pretending it's like everything else is disingenuous.