There are people that behave in ways I considered pretty irrationaly with their capital... and they work out. If they're getting an absurd percentage increase

There are people that behave in ways I considered pretty irrationaly with their capital... and they work out. If they're getting an absurd percentage increase from property values alone, an extra few percent won't make a difference. Not everyone min-maxes their capital. Governments probably end up eating them through inflation and taxes in the long run (but in the long run, we're all dead).