This means that house prices are a race to the top so to speak. You're always competing with your neighbors.
The first thing you do is have both of them work (this happened ~4 decades ago). Even if you don't want to, you have to, because your neighbors are doing it and they're your competition in the home hunt.
The second thing you do is live together with other unrelated adults to save money on rent (hey, housing is scarce for some dumb reason, after all).
The third thing you do is decide not to have kids, because after all, the 2+ bed flats are full of adult professionals sharing them. You can't possibly outbid them!
Meanwhile, the few extremely well-paid people are able to pay for the nice homes that were built before the housing cartels took over. Everyone else is screwed. They can move to the country, but jobs are scarce and crappy <massive generalization of course>.
Not sure what comes after step 3. Maybe we could trying building a flat or two?