It's because in most of the world, housing and RE is an investment first, and housing second. The negative effects of this are masked when you have abundant su

It's because in most of the world, housing and RE is an investment first, and housing second. The negative effects of this are masked when you have abundant supply, like in random suburbs in the midwest, but shows its ugly side when supply is constrained and the investment aspect far outweighs the utility people gain from using it as a house.