People say things like this, and yet housing has -- for most of history -- been a viable asset class, including in the times that people idolize as the great boom times of America.

The main issue is mismanaged regulation, as always. Real estate is probably one of the best examples of that. For example, in my city of Portland, OR, it's easier to keep an existing structure and not build new housing than to build new housing (because then you can do things by right). To build new housing, you have to hire a company called 'faster permits' (seriously, that's what it is called, look it up) which promises to 'expedite' the process of having things approved. If you, like me, are skeptical of engaging in investments in which you have to bribe your government to approve housing, then you won't put your money into building housing. Portland is probably not alone in these sketchy arrangements, which is why real estate developers often seem sleezy -- due to how the government manages itself, only the sleeziest people are willing to engage at all.