>>512506771>I dont really understand the economicsYou truly.
Don't it's rabbit hole of modern banking fractional reserve money supply. Banks create money when they lend money (check it up they just make money out of thin air when give you a loan). Essentially money supply is infinite. So via mortgage financing of house purchase prices are driven to the limits.
Limts are how much bank can you loan so you pay it off, limts are via debt to income ratio 35-50% (depending on credit rating). Essentially house prices are function of your income and become 35-50% of you income paid vide mortgage or rent (mortgage and rent are tied in price because they are alternative).
House prices aren't affected by supply much because on demand side demand is fueld by money printer feeding mortgages. So house expanses become= 35-50% of you income regardless of the market.
This is truth nuke bankers don't want to talk about. Fiat fractional reserve banking is disaster to people's economical well been..