[BenoitEssiambre]

Prices of houses may be high but affordability is not because of cheap financing. Payments could have been made lower with easier money and even cheaper financing. Asset prices are bounded by the cost of producing new houses and also, high house prices create good jobs for house builders.

[bra4you]

"Prices of houses may be high but affordability is not because of cheap financing."

A 7 fig house still costs 7 figures. In many countries you can not lock in the interest rates for 30 years but they get re-adjusted after 10 or 15 years. Could be a bad awakening for some.

"Asset prices are bounded by the cost of producing new houses"

1. "asset prices" are not only houses. But also Stocks for example

2. The most expensive thing is most of the time not the house but the land. "Buy land, they stopped making it! - Mark Twain"

Read a few books about economics dude.

[BenoitEssiambre]

The cost of owning a house includes the cost of financing, you can't get around that.

Stocks can also be created.

Land is a hard one. We have no choice but to share it somehow. But overly tight money is really really not the way to make land affordable. Reducing land prices through overly tight money is basically price control through making people too unemployed and too poor to have demand for land. It's an exceptionally destructive approach.

[bra4you]

"But overly tight money is really really not the way to make land affordable."

It is the other way around. Please google "asset price inflation".

"It's an exceptionally destructive approach." Only in your head my friend.

[BenoitEssiambre]

Stop googling and start reading real macro-economists. Both Milton Freedman (right leaning) Keynes (center-left leaning) would have agreed with me.