There's 3 circular things at work there - land value has gone up, interest rates dropped making total cost of ownership go down, and therefore the land value ha

There's 3 circular things at work there - land value has gone up, interest rates dropped making total cost of ownership go down, and therefore the land value has gone up creating a good investment. If I borrow 500k at 1% interest I'll pay back 565k in total over 25 years. At 6% I'll pay back close to $1m. Or to put it another way, the collapse in interest rates have almost halved the total cost of a house. Now, house prices are twice as high because everyone has access to low rates, but as well as this houses look like a fantastic investment - it's doubled in value! It's going to the moon!