[pas]

Vacancy in areas where people want to live are historically low.

Bad valuation in contracts doesn't change the big picture. (As it mostly affects office buildings.)

Urbanization is ongoing for hundreds of years (and got absolutely turbocharged since agriculture productivity skyrocketed), but a sufficiently high number of incumbents/voters in cities don't want their city to densify, so they have the resources to block most effective redevelopments.

States, governments, politics mostly managed this by providing more cheap loans/mortgages, and mostly by ignoring the problem, or even by not even believing that the demand is real. (Remember when housing was called a bubble because prices were rising too fast? Yeah, prices are much higher.)

A very significant portion of young people's economic output is basically converted into spending a lot of money on shitty inefficient and extremely uneconomic housing and its consequences. (More and more and more .. and more suburbs, roads, cars, etc.)