Too many people competing for the same low paid job = lower wages.
Too many people competing for the same first-time buyer house = higher house prices.
Put the two together, this is a bad combination for the working class.
Less competition for jobs = higher wages. Less competition for housing = lower house prices.
The jobs at the low end are usually where there are a large number of people doing the role. A manufacturer won't employ someone on more than someone who is already doing the role. Their wage will rise as cost of living will force it but it won't be high enough to cover the price increases. Labour costs go on the price of goods, they will simply pass it on to the consumer. Not in all case will it happen immediately as rival companies will try to increase market share by exploiting those that have increased early, but they will eventually increase their price.
The jobs that will benefit are those where there are a skills shortage and the company needs to retain them, usually already well paid roles. 4% of 20k isn't as good as 4% plus bonus of 60k, so all it does is increase the divide.
Houses will be bought with those looking to invest their extra cash as money in the bank is meaningless. Less materials and less migrant labour will mean a slow down in house building, which will push the price higher. The people in control have so much invested in bricks and mortar that they will do everything to maintain prices, they won't go down.
