So people sell their houses for Bitcoin, which drives down prices of homes.  

But demand for rental housing (from the tenants' perspective), drives *up* the cost of rent.

Since people don't want to spend much of their Bitcoin, houses are made smaller and cheaper.

Since wages go down, affordability for buying and renting goes down.

As for mortgages, why would a lender want to lend out their best appreciating asset (Bitcoin) to someone whose wages are declining, to buy a house that is losing value?




joda

Many with mortgage in fiat world would still be tenants in sound money world. Many houses are underutilized as living spaces in fiat world. When an illiquid asset appreciates faster than the currency, the incentive to 'put houses to work' is less. Maybe there are fewer empty houses/rooms in sound money world.