> we seem to be running out of transformative capacity to keep building essential stuff like housing in many countries

Eh, I think we all know that we could build the housing if we really wanted to.

> This just seems self correcting to me - on both axis.

I agree, but it could a rough ride if the correction is too fast or too far. I think quite a lot of people would prefer the industrial system to keep running, and there is probably a minimum population below which it cannot run.