Ok, show me the real world place in the US where this actually holds true. This hypothetical gets touted around, but I’ve never seen it play out this way anywhere I’ve lived.

For example, I currently live in a second-tier Midwestern city in the midst of a housing crisis. Wages aren’t great relative to their respective industries, but rents and home prices are still skyrocketing. There’s no influx of new construction outside of the luxury sector in a few neighborhoods, a lot of which sits empty. Meanwhile, existing landlords just collect ever larger checks from their properties without meaningful continued investment.