A house is only worth what it pays you to live there.

Just give a bit of thought to how many ghost towns there are in spite of population growth and it becomes clear.

There were all sorts of towns built all over America, Canada, Mexico and South America to serve a single industry or exploit a single resource.
Old farming centers on the prairies, mining towns in the desert, abandoned mill towns in the north east.
When the industry failed or the resource was depleted then the people left.
The industry might have failed because the technology changed and it became obsolete. It might have failed because of trade or tariff changes. No difference
The process is still going on.
It goes on even when the general economy is booming.

Some towns are fortunate enough to be able to change their business and find new sources of income, but far too many just close and decay.
It is not just in the Americas either. You find ghost towns in ruins all over the world.

So a house is only worth what it pays you to live there.