It's not fully correct. Propulation growth, employment, income growth, economic growth and productivity growth are all thought to impact real estate prices and inputs.

Then within population growth you'll have subsets where the country overall might have an anaemic 0.5% population growth but Auckland for example might still enjoy 1%+

Finally you'll have demographic changes. Having more children? Then bigger houses, large sections, multiple bedrooms etc are attractive. Aging Population? Painting weatherboards and rattling around an inner city bungalow worth high 6 / low 7 numbers while enduring a low fixed income probably doesn't make much sense.