[lumost]

You're effectively arguing that we need price stability in housing, something that should be a given. Unfortunately we've adopted a policy of price growth in housing which has made it untenable for new buyers. If we could ensure that housing was a stable asset in both directions then we'd generally be in better shape.

I'd suspect that many Nimby issues would go away if people didn't view their house as their retirement. To your point, interest rates are not the only mechanism for this - and direct government construction might be more efficient.