Globalization pushed inflation down and that pushed interest rates down, which raises asset values, homes included. Lower interest rates allow buyers to pay more for a house  if the demand exists.  Central banks just follow the trend in rates - they can't stop them. If they raised the overnight rate to 100% today, do you really think that mortgage rates would move up from 2.5% to 100%?  It doesn't work that way. And median wages DID drop when adjusted for inflation, especially during the 1980's and 1990's.