In my experience, a huge number of people spend the most they can on housing. So the local price level is set by the local income distribution. Their observation lines up perfectly with my experiences.
This also suggests two solutions that are bound to be unpopular:
* To make housing prices more reasonable, give everyone a pay cut.
* Trying to set a "living wage" is futile since boosting income will feed right through to the price of housing.
This also suggests two solutions that are bound to be unpopular:
* To make housing prices more reasonable, give everyone a pay cut. * Trying to set a "living wage" is futile since boosting income will feed right through to the price of housing.