Comment by bombcar

Lots of the issues would be "solved" by adequate supply of new dwelling units (which is a way of driving the prices down). There's really no other way of solving the "X people lived here, now 1.4X do, but dwelling units have only increased 1.2 times."

In the past this effect was localized and when housing prices went insane, it was usually in a city, or a region, not a whole country. And high prices would encourage development in the cheaper areas, and people would move "out there".