Housing is expensive because of a demand spike, as people are now consuming house-space where they used to consume office-space, school-space, and other public

Housing is expensive because of a demand spike, as people are now consuming house-space where they used to consume office-space, school-space, and other public or communal spaces. Any return to these spaces being open, especially any pullback from WFH, is likely to result in a reduction of this demand. The question is the extent to which this will happen, where it will happen, and whether it will be sudden. Something is certain to happen along these lines. The other question is what happens if the Fed hikes interest rates and mortgages are much more expensive. Since most people still have mortgages and most mortgage owners are limited by a price-per-month expenditure, this could hurt demand as well too, and depress prices.