Aside from investors, the people who benefit from high housing prices are property owners who are downgrading, specifically moving to a smaller home or cheaper

Aside from investors, the people who benefit from high housing prices are property owners who are downgrading, specifically moving to a smaller home or cheaper area, which is what older folks whose kids have moved out do. As an oversimplified example, let's say in one world you're a senior who moves from your family home worth $200,000 to a condo worth $100,000; that's $100k in profit. If housing prices are uniformly 4x that, you're moving from a home worth $800k to $400k; your profit is also 4x. So it's in your best interest for housing prices to be uniformly high. You're right that for those looking to upgrade it's not beneficial, but as with everything, the 50+ age bracket are the voters and politicians, so the policies that benefit them are what get put into place.