@feld

High wages and limited supply of housing results in high housing prices, that's the same story here in the UK.

It can be changed either by reducing demand (e.g. Brexit -> 1m people left London -> rent falls by 8%) or increasing supply (open new land for construction, introduce cheap public housing).

Of course, high rent prices also result in increased prevalence of rentiers - people who do no work except for owning stuff, something that Adam Smith warned about ~200 years ago.