Good Sources on the Effects of Real Estate Prices on Other Sectors of the Economy?

I've been thinking recently on how real estate prices affect other areas of the economy. For example, if rents increase in an area, residents will ultimately need higher incomes to continue living there. As a result, local businesses will need to pay higher wages to retain their employees, and higher rents to maintain their locations. These businesses will in turn need to raise their prices to afford the higher wages and commercial rents.

Obviously this is an incredibly simplistic example, but hopefully it communicates my thoughts. Can someone recommend a starting point for researching this further, or help me understand why I'm wrong? Google and searching Reddit didn't yield much.