Prices rise because a certain proportion of workers are high income workers, and when you limit supply such that a region can't fit all its workers, that's who

Prices rise because a certain proportion of workers are high income workers, and when you limit supply such that a region can't fit all its workers, that's who wins the bidding war for the house or who happily overpays for that ratty apartment and this process raises all boats over time. There's no backstop either; people on the low end of the economy end up paying more and more of their disposable income until they have to start putting bunks in bedrooms and living rooms to pay the rent on their wages. Only middle class people can afford to move to a lower cost of living area since moving as high upfront costs with sometimes no prospects of a job at the other end so you need a savings to float for some time.