patrick.net

When corporations buy single-family homes to spike the prices for profit, they're creating an artificial scarcity that drives innocent families out in the cold without having the resources to compete with a housing market got amok

Every time since 2010 that housing started to approach numbers being built that equaled population increase, the Fed would push up mortgage rates and kill the market. This time around, there was no increase in the infrastructure such as increased amounts of lumber being produced. The industry simply let increased prices determine who would get a new house built instead of increasing infrastructure to make it available for more people. Yes, low interest rates increased house prices but so did increased construction costs (plus the additional fees charged by the cities for permits, etc.

We seem to have people spending more on a house than they used to, but no real overbuilding.

Let me show you how it looks here in crazy silicon valley with my crap-shack. Here's the Zillow estimate graph. Notice the current price and the Zestimated rental price (at the bottom), which I think is only slightly out of date. For those new the Pat Net, let me refresh your memory: 3 bed, 2 bath, 1555 sq ft, non-grounded 100 Amp electric, crawl space foundation, 6500 sq ft property. Insulation? Forgetaboutit! Oh... I forgot... $2.7 of that $2.8 MM is walking distance to Apple Infinite Loop and Apple Spaceship.

Misc says

We seem to have people spending more on a house than they used to, but no real overbuilding.

All markets are local but you are exactly correct. In most localities there is simply not enough supply of housing to meet demand. So unless people start dying or losing their jobs, they will continue to buy houses which will limit any downside in the housing market. In fact if prices go down demand goes up.