Can someone explain to me why is it healthy for housing prices to shoot up like they are?

So the house I'm in, my parents house they got it back in 95 I think for about $150k. This was expensive, but it is a brick house.

There is no major companies near by, we are in the middle of nowhere, most have to travel 2 hours a day for work, and there is a shit ton of houses coming in after the gov ran off the poor from other parts of the state. The houses they build are extremely poorly built and quick. They use to be $80k-$100k a few years back. Now most are $200k+

The neighbors across the street sold their brick house for almost half a million. How is this healthy? It feels like this can't keep jumping up in price, but maybe I miss something since it does keep going up.