Why do housing prices go up? Partially inflation. But mostly because purchasing a house and renting it out is massively profitable, state subsidized, and a safe way to invest a store of wealth. Owners of capital seek out niches with good risk:value ratios. Look at housing prices over the last 5 years: even if your investment home sat empty, it's probably gone up 70% or more in price. Rent is just profit on top of those (also state-subsidized, way more than any other asset class!) asset gains. Mortgages that are all-but-guaranteed by the state allow even the least-qualified investors to massively leverage themselves into multiple million dollar properties.

The housing market is broken because moneymakers would rather maximize profits and render everyone else homeless than participate in a functional society. Consider a world where investors own 80% of housing in the USA: would they rent it all out? Or would the small number of corporations collaborate to keep _most_ units off the market, massively spiking the cost of housing and increasing the value of their portfolios? Our healthcare market suggests that when it comes to necessities, people are willing to pay literally any price. And our society has become more and more unequal in the past couple of decades, with the top 1% controlling as much capital as the bottom 50%. Logic dictates that the small number of that 1%, or perhaps the top 10%, if forced to pay insane rents for housing, will provide more profit than setting rent prices that everyone can afford.

I don't think we should vilify the average homeowner who doesn't want to end up underwater on their mortgage. We should vilify the government that has allowed market forces to increasingly distort the residential real estate market, to the point where we're starting to squeeze essential jobs like teacher, firefighter, waitress, and nurse out of the market entirely. Both for rentals and purchases.

Right now it doesn't matter if we double the US housing supply in the next year: it'll still get bought up by investors with far deeper pockets than the average family, because those investors have a strong incentive to prop up the real estate bubble -- they've got more skin in the game than anyone else. And they're less discerning, waiving inspections and paying 10% over asking in cash because if the house turns out to be a lemon they'll just absorb it into margins. Or write it off as a business expense -- depreciation!

The US housing market needs a massive overhaul to disincentivize residential property ownership for anything other than owner-dwellings, co-ops, and small, local landlords (to provide flexible rental options for those who move around too much to justify one-time buying costs). Much like a monopoly or oligopoly in the any other industry, large market forces in the housing industry have deeper pockets, more lawyers, more lobbyists, and more time than any small-time player. And those large market forces have a tendency to squeeze everyone else out.

Housing should, first and foremost, put a roof over the head of every person in the country before anyone profits at all. Anyone who tells you otherwise is either directly or indirectly profiting from homelessness.