Especially considering the house structure itself is usually depreciating in real/material value (whether or not the price is still going up) due to aging. At a certain point, just the land needs to cover those real returns.
At some point the banks should step in and say hey, there is no way this property is worth $300k, $600k, $900k - it will never sell at that price again, none of the local industries pay well enough to have a $7k per month mortgage payment, if the loan defaults we are going to take a bath. However the banks don’t do that, they just say California idiot has money to blow, give him the loan.
And of course the California idiot is going to have problems also when he wants to move in 2-7 years and finds out nobody can afford his house.
though I agree with larger point that its not productive growth. In fact I have been saying in past that land prices are the perfectly useless sink for the worthless money created by central bankers out of thin air.