If you take away the "always increasing" price of homes.

Is that true.

Homes for the majority of human history have not been something that "always appreciates", the condition of the domicile might actually be worth less than the components it was constructed with.

At some point, nobody who isn't already on the ladder can afford to buy, then you've hit your market saturation. Then it's about how much more can you squeeze them for.

If interest rates rise, house prices fall, because most people buy at the edge of their affordability -- and soon there'll be no homes that they can afford at all, or: the house prices must stabilise and not "forever appreciate".. they can't both be true.