It's simple - Brooklyn just became a trendy place in the meantime. And so, of course it's overpriced. Smart people don't overpay for things - the solution is just to live somewhere else. 99.9% of places are not trendy and thus not overpriced.
There are thousands of cities in the US, and maybe 10-20 of them are so popular that everyone wants to live there. Of course the prices in those places are going to be crazy - you have to outbid everybody else.
It depends on what you mean by 'overpriced'. Most people are talking about housing unaffordability which is not limited to trendy places. The house I rented in Kansas City Missouri in 2009 for $900 was bought by the owners in 2007 for $120k. Zillow estimates that same home would rent for $1800 a month and is valued at $269k. KCMO is not trendy or even a desirable place to live.
It’s not simple. If “smart people don’t overpay for things” I’ve got some news for you about inflation. And no, moving somewhere simply because it’s cheaper isn’t a solution that fixes everything for everyone in every situation.
There are thousands of cities in the US, and maybe 10-20 of them are so popular that everyone wants to live there. Of course the prices in those places are going to be crazy - you have to outbid everybody else.