Maybe that's what they are saying. I could understand this wrong but high real estate prices locks up a lot of wealth in property where it isn't really doing any good. If all that wealth was able to circulate in the economy, it might increase growth.

You might argue that when I buy a house for $500k, the seller gets $500k, so where's the problem? But the seller needs somewhere to live too- they are probably putting that $500k into another house, commonly an even more expensive house.