Ignoring the reality won’t change things. Once we understand the hows and why, which have to do with decreasing job security requiring life near urban areas, huge sums of cash looking for returns on investment, etc, we can then try to fix the issue.
Problem is that the real root of the issue is the lack of stability in people’s incomes, due to jobs being outsourced to poorer countries and automation, for which there is no undoing, and would require redistributing wealth.
Leaving everything to the mercy of international markets is not an inherent feature of reality. Many countries had, and have, limits on foreign ownership of real-estate (and media), as well as reduced taxes on people's main residences, and this can make houses more valuable as homes than financial instruments. They are not 'ignoring reality' by adopting these policies.
Problem is that the real root of the issue is the lack of stability in people’s incomes, due to jobs being outsourced to poorer countries and automation, for which there is no undoing, and would require redistributing wealth.