I get what you’re saying, but the housing market is actually a really subtle issue in my opinion.

Just one example, owning a home protects you against price shocks. As others have pointed out, this can sometimes be a bad thing, because when prices decrease you are also leveraged.

But it’s pretty important to a lot of middle class people that they are protected against forced relocation due to 5x housing price increases.

Of course, there’s other reasons to not own a home.

My point is that localized housing markets have all sorts of factors that are perfectly explainable by economic theory but aren’t just “Econ 101, run the supply and demand” curve.