I came to exactly the same conclusion when looking at a far worse housing market (Australia). Promoting housing as a vehicle for middle class wealth creation wi

I came to exactly the same conclusion when looking at a far worse housing market (Australia). Promoting housing as a vehicle for middle class wealth creation will soon be viewed as one of the stupidest economic policies ever pursued by democratic countries. It's unsustainable for the exact reasons you laid out. I do wonder if a handful of countries (Canada and Australia in particular) are going to suffer drawn-out stagflation, since incomes need to increase to account for increased housing costs, but homeowners won't vote for anything that will temper their investments, so the cycle continues until demographics swing the voter base in favour of non-homeowners.