In some cases is precisely the value that make the prices go up in the first place.
For instance, people want to live in city x because this city have nice features (good public transport, good public spaces, buildings size that leave to see the sky..). Those features are in some cases due to location but, in other cases, are due to what the people that have been living there for generations have done with the city.
Now outsiders come and out-price the people that "created" the city and, in the process, destroy the value of the place. So, people start to move to another nice city. Rinse and repeat.
This, it seems to me, is not a "fault of the market", but the effect of an optimization process run amok. And I have not even mentioned speculation.
For instance, people want to live in city x because this city have nice features (good public transport, good public spaces, buildings size that leave to see the sky..). Those features are in some cases due to location but, in other cases, are due to what the people that have been living there for generations have done with the city.
Now outsiders come and out-price the people that "created" the city and, in the process, destroy the value of the place. So, people start to move to another nice city. Rinse and repeat.
This, it seems to me, is not a "fault of the market", but the effect of an optimization process run amok. And I have not even mentioned speculation.