I find it pretty preposterous that you would think local small businesses are the ones conspiring with any significant political power, cash reserves, and lobbying objectives
So no, the small businesses probably aren't conspiring, but they are likely riding in the wake of the large corporations (having to pay workers less to offer the similar prices to remain competitive towards shoppers).
The idea is business owners are acting in concert to protect their interests.
And for them to hire employees who can afford the skyrocketing housing costs, they would have to pay more. Possibly much more.
It's puzzling that many small biz owners don't seem to grasp this bit of economics. At least they give no sign.
I know they can't fix this bit of reality, but they seem clueless about it.
Only if they insist on maintaining the same profit margin. As demonstrated by the massive wealth transfer that happened during the pandemic, most businesses aren't hurting.
Why do you find it preposterous that people with the same problem and the same motivation act the same way?
Also: these folks certainly do talk to each other. At the golf course, the chamber of commerce, on social media...