Yeah, not sure how valuable lots of real estate is if there aren't any high-paying jobs nearby, in part due to AI.

And this isn't even about the total number of high-paying jobs. Even having too much income concentration (fewer, but higher paying jobs) will mean that there's less demand at the margin. To put it another way, if the job growth in say, silicon valley, starts to reverse because of AI, there will still be newcomers, but not enough to buy out the available housing at an ever increasing price.

If the price trend ever reverses and holds that way long enough to seem like a new normal, I suspect the price will suddenly correct downwards. Everyone holding on to real estate as an investment will have a great reason to sell once it becomes a depreciating asset. If it goes on long enough, people will be underwater on housing and start walking away.

The price trend is already somewhat flattened, which reduces FOMO. Why buy now when AI is uncertain and the price seems pretty flat?

Those people still need to rent. So as long as the rental income covers the mortgage, you’re ahead of the game and someone is paying an asset down for you.