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Vancouver employment earnings up 63% in the last 17.7 years (2.8%/year), single family dwelling prices up 360% (9.0%/year).
You missed a few other important terms in the equation.
House Prices = Employment Earnings / Interest Rates (x (Somewhat) Constant)

I'm not sure that's an outstanding fit to the observations.
Many a bubble took off without any meaningful income or interest rate change.

Real interest rates certainly matter to current affordability and prices, but they seem to have surprisingly modest explanatory power for medium to long time frames.
Real interest rates plummeted in the 20th century in the US, but there was almost no net change in real house prices.

Over long periods, there is pretty reasonable mean reversion to rents, and also to median income, for most "ordinary" places in the world.
Since assessing bubblishness requires some sort of long run yardstick with reasonable stability, most observers use one and/or the other of those.

The exceptions to to typical income are a few places where, like a moat, people perceive no close substitute and the number of people wanting that property rises inexorably, seeming to cause a forever upward trend in real prices.
Prime Central London or the Upper East Side, for example.
Hmmm...I suppose that even in those places, there's probably some correlation to the income of the pool of possibly interested buyers.

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