I need to dig out the link, but there is a Study from Finland that shows this is incorrect:
As housing stock quality improves, everyone upgrades. Which leaves room at the bottom level to get on the ladder into lower quality cheaper housing.
Also supply and demand: if prices are increasing it is mostly because supply is not keeping up with demand.
Lastly, like all other products in a market, we should see a general improvement in quality, this isn't a bad thing (think how cars how 10x more reliable, comfortable and fuel efficient than they used to be).
As housing stock quality improves, everyone upgrades. Which leaves room at the bottom level to get on the ladder into lower quality cheaper housing.
Also supply and demand: if prices are increasing it is mostly because supply is not keeping up with demand.
Lastly, like all other products in a market, we should see a general improvement in quality, this isn't a bad thing (think how cars how 10x more reliable, comfortable and fuel efficient than they used to be).