> it seems like competition for housing drives up prices as wages increase

This is a significant claim. What do you base this on? Are there any studies or references?

Here is one: https://www.frbsf.org/research-and-insights/publications/eco...

"Research shows that average U.S. income growth is strongly related to rising house prices but is essentially unrelated to changes in the supply of housing units across metropolitan areas."

Anecdotal but many major cities in America have this issue

San Fran is a clear example, tech money is driving the price for scarce homes up substantially. Go peruse Zillow and see the insanity

On the Principles of Political Economy and Taxation by David Ricardo.

This book is most famous for being misquoted by nitwits trying to argue that globalization is always good for everyone, but if you had asked David Ricardo he would have said his most important result was that of Rent (later specified as differential rent or Ricardian rent), the idea that economic productivity tends to get squeezed onto land prices. A modern update would argue that this applies to assets more generally. Assets go up by squeezing productivity out of the main economy. Whether you think this is brilliant or terrible depends largely on whether you own lots of assets.