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I think you're also missing the fact real estate as an asset class has more value as an investment vehicle v(holder of value) than it does as providing the utility/value it was designed for.

Furthermore, low interest rates has increased the cost of homes as well and increased the amount of money swimming around looking for a home.

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Investment in housing and low interest rates would actually spur new construction and thus reduce rents if the housing supply were more elastic. It is the fact that supply is inelastic in a few cities that makes investment harmful for homebuyers.

And technically the market has responded by the plethora of low cost housing all over the city.

Tents.

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