It is not as simple as supply and demand. There is a huge profit motive as all that controls supply and the type of supply. It is one thing to build studio apartments but do we need "luxury" studio apartments for a 50% premium?
https://www.google.com/search?client=safari&rls=en&q=luxury+...
Since housing is a need people will pay what they have to. So the supply and demand chart is skewed. Also, that demand also includes people who demand two houses. And an artificially low supply, well who does that benefit?
If there was enough supply built housing prices would crash. How do you think people who view their houses as an investment feel about that?
people do not need to be evicted when the economy crashes. That as a choice in 2008 that Bush and Obama made. They bailed out the banks instead of the people. But the solution is deeper than that as well. There is no way out, and people with more money then you will have it all and you will have nothing, that is how this all works.