A house in Omaha doesn't help someone living in NY, so saying there are plenty of houses but they're just in the wrong place is so wildly wrong I have to think it's intentionally done just to score cheap political points.
Instead of moving away people move further into the suburbs and commute so they can arbitrage the higher pay of the urban area with the lower cost of living.
We have a term for this, its called suburban sprawl.
The number of jobs in low cost of living areas can't support the cities, and lack of housing leads to folks moving just far enough away to make the math work.