The first part at least sounds like things are working like they are supposed to work. The same thing happens with interest rates. But we wouldn't say interest

The first part at least sounds like things are working like they are supposed to work. The same thing happens with interest rates. But we wouldn't say interest rates "kneecap" property value, would we? They're just a fact of the market, and mostly just alter where the money flows to. The buyer commits to $1,000/mo in payments- with high interest, the bank gets more and the seller gets less. With low interest, the bank gets less and the seller gets more. Why is there little incentive to maintain property? Just because it's worth "only" $200k?