Housing is not part of the inflation calculation. There IS a housing inflation crisis.

Household income is more than just wages. Household income can go up while wages remain stagnant or shrinking because other pieces of the pie are increasing (e.g. work benefits, investments, money from the government). https://fredblog.stlouisfed.org/2016/09/sources-of-household...

The price of housing can rise even faster than incomes.

Housing is only a part of the basket used to measure inflation. Housing's price rose faster than the weighted basket average, some other goods and services rose slower or even fell.

Inflation also corrodes your savings and investments.