I'm sure that a price increase in land results in a "rising tide" effect for all homes, but because someone is willing to spend 64M on a mansion, does it mean condo's should be worth more too?
It has a cascade effect - if a person who can afford a $2M house is forced into buying a smaller property because $2M doesn't go as far, that displaces the guy who could afford $1M, who displaces the guy who can afford $750K and so forth. Further down the line it hits people who can't afford to buy at all, people whose rent becomes unaffordable on their income, and so forth.
It has a cascade effect - if a person who can afford a $2M house is forced into buying a smaller property because $2M doesn't go as far, that displaces the guy who could afford $1M, who displaces the guy who can afford $750K and so forth. Further down the line it hits people who can't afford to buy at all, people whose rent becomes unaffordable on their income, and so forth.