I think the fact that the money for college and the money for houses can't be used for other things has a huge impact on the dynamics, along with the fact that both housing and college are often purchased (partly) as display of wealth and the fact that both are oversold as investment. Which isn't to say we'd see no change in the price level, but rather that we'd mostly only see that where costs of production actually rise - otherwise, competition will still hold prices down.