This is how markets balance. When there is under supply prices go up and incentivize production. When there is oversupply production goes down. Prices converge on a small premium to the price of production.
Similar to how the convergence point on price for a platinum-bodied iPhone converges at "unattainable for enough people to support its production" and it therefore doesn't exist.
The difference being, obviously, that society can hum along just fine without platinum-bodied iPhones and it cannot hum along without housing.