Markets are at best a tiny piece of the question on housing. It has more to do with zoning, infrastructure planning, incentives among the various roles involved

Markets are at best a tiny piece of the question on housing. It has more to do with zoning, infrastructure planning, incentives among the various roles involved in building, the foibles of real estate sales, the voice of incumbent residents who moved there because of the state of affairs that now has insufficient possibility for housing... At the far end of that you have a market for what is there. It's nearly impossible to buy a well designed, well built house in many places because there aren't any. But the invisible hand of the market largely just skyrockets prices for limited, poor buildings because it doesn't have much real effect on the rest.