The sole reason for the high cost of housing in big markets is due to housing being used as an investment instrument. When you can get an open mortgage for 2% and make a 20% return in Van or To why invest anywhere else. Smaller markets are experiencing that to a lesser extent. 
And it isn't only investors from abroad, but home grown vultures who are putting the squeeze on housing.
As long as money is dirt cheap, money/investment will drive the housing market.