There is not perfect price elasticity in the housing market. The demand for housing right now is pretty much infinite because of the speculation. In other words

There is not perfect price elasticity in the housing market. The demand for housing right now is pretty much infinite because of the speculation. In other words, the housing price is not based on supply, but it’s based on the demand. And the demand is being driven by speculators. The answer is to remove housing as an investment vehicle. Also prohibiting the ownership of multiple houses by a single individual or institution.