So one of two things will likely happen:
1. Economy will go into recession, feds can’t drop interest rates much more (they are already low), so recession hits hard.
2. Inflation skyrockets and the fed starts cranking up interest rates in an effort to control it. Economy stops growing but inflation continues (hi 1970’s!). People bitch because their paycheck stays the same but he price of milk doubles.
Land prices are not included in inflation stats. The cost of carry is, as mortgage payments, however that is simply the cost of money. And rates are at all time lows.
The difference between 7% rates where your mortgage takes up most 50% of your wages and 2% rates where your mortgage takes up 50% of your wages is that it's far harder to pay off your mortgage in the latter case.
You cannot attain financial freedom. This means ultimately you cannot refuse to work, even if compensation is poor (low wages, stuck low).
There is inflation. It's being used to force us to work, and the precariat cannot bargain for more of their surplus value.
Or in other words, many people aren't paying market rate and it brings the average down. This isn't what you experience if you need a place now, or bought recently. Inflation is an average and most people aren't average. (Just like nobody has 2.2 kids or whatever.)
The only people who seem to be enjoying it are exploiting the bubble with high wages and investing companies.
And if you didn't take the investment, your competitors destroyed you.
Fiat currency is a weird thing.