Everything you said is true. I kept my original comment short to emphasize the shortage as the main cause of price increases. A shortage occurs when supply is l

Everything you said is true. I kept my original comment short to emphasize the shortage as the main cause of price increases. A shortage occurs when supply is less than demand. It can happen even as both increase, as long as supply increases more slowly than demand. I like to view housing as a game of musical chairs. If you have 100 chairs but 300 people competing for the chairs, 200 people will necessarily walk away disappointed. If people get dual incomes and longer mortgages (with lower monthly payments), that's like giving people faster legs. There are still 100 chairs and 200 people disappointed at the end of the day.