It does and it can be quantified. I can guarantee you that it is not as high as the price asked. Most of the price comes from the land price.
Moreover, your house price depreciate in reality but rent and buying price increase? That doesn’t make any sense, unless the land price are increasing. And this increase is due to other people’s work, not the landlord.
Old house should be cheap, labor is cheap, yet people pay 30%+ of their salary in rent. Imagine the same with a car instead of a house, that could never happen, so what is the difference ;)? The land.
when I say labor is cheap I mostly mean the landlord “labor” since this is virtually nothing. It’s not that expensive. It’s never 30%+ of your paycheck, most houses need nothing most of the time. Most of the rent/buying process of housing is land (aka dirt) value.
It’s not so much that you want to live in a nice place, it’s more than one must. We need to bring land prices down it would be better for the economy, for future generations, and for social equality… We can:
Look up how Vienna does it, or in the US, the rezoning associated with rent controlled guarantees (without those guarantees rezoning increases land price)