There are plenty which don’t. Look at the smaller US cities.

You can get large, relatively new houses in Youngstown, OH for less than $150/sq foot. Similar prices can be found in Omaha, NE or Iowa City, IA or Oklahoma City, OK. (For reference I looked for houses with at least four bedrooms in all places.)

This isn’t a matter of the cost of construction. It’s a matter of supply not keeping up with demand due to very very very stringent regulations on land use. None of this has to happen. This is a self-inflicted wound.