Concillor Bligh regarding people who own property worth over $3,000,000: "They don't have any extraordinary wealth except they happen to have land that has increased in value." THAT'S WEAAAALLLLTTTTTHHHHHH LAND WEALTH IS LIKE THE MOST ANCIENT FORM OF WEALTH
Thing is that the obligations on a $3m house are presumably already priced in; if you live somewhere with e.g. outrageous taxes for homeowners, newcomers are going to be less likely to want to buy vs.. rent, driving local house prices down.