I don't have an answer to that (I'm sure others do) but I do feel this is a problem that can only make itself worse
The more prices go up, the larger % of net worth for an individual a home consumes. If your entire net worth is wound up in your home because your home costs so much, your incentives are much higher to keep the price of your home from falling than if it was just a fraction of your net worth. Worse yet if you're in debt and you have to sell
The longer this problem goes on, it seems the harder it will be to rectify
The more prices go up, the larger % of net worth for an individual a home consumes. If your entire net worth is wound up in your home because your home costs so much, your incentives are much higher to keep the price of your home from falling than if it was just a fraction of your net worth. Worse yet if you're in debt and you have to sell
The longer this problem goes on, it seems the harder it will be to rectify