You don't see median income increases then you won't be able to afford those home prices or rents. It does have a relationship and that's been missing with this "well we don't have inventory" talk. We will have inventory because the Fed is in a mode of raising interest rates to reduce housing costs no matter what and inflation hasn't slowed down at all. We could see mortgage rates rise to 8-10% eventually, which will hammer demand and inventory will increase substantially on it's own. Sure some people won't sell, but others will. Estate sales, people having new jobs they have to move closer, etc.

If everything wasn't dropping right now (expect inflation), I'd say you are right. But that's not the case. Stock Market is getting hammered, Crypto just took a beating and demonstrates how flimsy it is as an investment, and main street isn't as healthy as it needs to be to survive Real Estate and Stocks getting slammed. Demand will fall
off the map for most things which will translate into businesses cutting jobs, which means unemployment, foreclosures, evictions and then the cycle gets worse. Housing crashes usually take a bit longer, but this is nowhere near the end we barely started, we really won't know for another year hard the market will correct.