The price of houses is driven by market rents compounded with access to financing. If lenders are willing to finance an investment with 3% yield, then house prices will jump to 33x their annual rent value - it goes without saying that's only possible in low interest markets.
The rent itself however is controlled by supply and demand - there needs to be a real person there earning a paycheck and he must have no other options before going for a high rent house. Therefore, the options for keeping rents down are either keeping people out of the city through administrative means, or, realistically, building higher and denser. Good public transport infrastructure is an essential component because it opens for development distant areas that otherwise would not be desirable to people working in the city.
On the other hand, as the city grows, economies of scale bring in more businesses, create more high paying jobs and opportunities, therefore attracting more people - up to the point where rents and commute times increase again and restore equilibrium. A Malthusian catastrophe of sorts, that requires radical new transport solutions and workplace transformations, as opposed to building regulation and financial innovation.
The rent itself however is controlled by supply and demand - there needs to be a real person there earning a paycheck and he must have no other options before going for a high rent house. Therefore, the options for keeping rents down are either keeping people out of the city through administrative means, or, realistically, building higher and denser. Good public transport infrastructure is an essential component because it opens for development distant areas that otherwise would not be desirable to people working in the city.
On the other hand, as the city grows, economies of scale bring in more businesses, create more high paying jobs and opportunities, therefore attracting more people - up to the point where rents and commute times increase again and restore equilibrium. A Malthusian catastrophe of sorts, that requires radical new transport solutions and workplace transformations, as opposed to building regulation and financial innovation.