[adameasterling]

"Housing prices only keep pace with inflation. America realizes it totally forgot about a few million homes it built, greatly expanding supply. Housing prices rise only 2%. Alice is much, much worse off for buying. In total, buying costs ~$1.75M, where renting would have cost her ~$1.3M."

Err.

What?

In this scenario, Alice lives in a world where a homeowner is allowed to subdivide their lot and sell homes worth about the same to N more people. Sure, one "home" costs the same, but she'll be allowed to fit a lot more homes onto her lot. She comes out way ahead in this world.