Investment real estate ruined the housing market. All of a sudden housing prices are expected to grow year over year as an investment. As more and more growth expectations were applied to housing, public policy (including zoning) changed to protect those expectations. Is it any surprise that there came a point at which it became too expensive?

Once problem we need to solve is how to unwind housing prices without financially ruining honeowners whose house is their primary/only wealth. Of course this problem is even more severe in areas of the country that are becoming uninhabitable due to changes in climate as it drives down demand.