I think things would be better if interest rates were higher as well. Inflated home prices are from high demand, but also because so many people can get loans f

I think things would be better if interest rates were higher as well. Inflated home prices are from high demand, but also because so many people can get loans for 350k. People would be less willing to deal with that price tag if they had to deal with 5-7% interest. You'd start having smaller homes being built and lower competition in the market. It would also incentivise people to save for down payments instead of the pay as you go model we have now.