I agree with everything you write here except that housing prices are based on supply and demand. They are not.

Housing prices are based on real estate value which is a function of capitalist process of storing 'surplus-value' in urban centers. I call this the center/periphery phenomena where real estate in city centers are expensive and store value, while real estate in the periphery are less valuable.

This creates a phenomena called 'uneven development' where capital is stored in rich cities, and extracted from poor countries and regions around the world. Cities like San Francisco, London, or New York are not expensive because they have not built enough housing, but rather they are functioning as storage for capital accumulation in the form of real estate prices.

The reason this distinction is important is just building more housing will not solve this 'center/periphery' and 'unequal development' problems. These can only be solved through rethinking capitalism. (and real estate)