In the developed world (including but not exclusively US and EU), the problem is people flocking to big cities which grow way past their housing capabilities while small towns and villages become depopulated with mostly old people living there.

I seen this in Romania (where I live), it's the same in France, Germany, etc. Whole houses with terrain and garden in the countryside cost a fraction of an apartment in a big city and yet they become derelict because noone buys them.

The work from home "revolution" only touches a very thin layer of people, most people with jobs still need to show up physically every day. And it's only in big cities that jobs get concentrated.

I think overall it's a problem going back at least a century, the move from rural economy where 90-95% of the people were working in agriculture, to urban economy. In the rural days, people were spread relatively uniformly. In fact cities were a small fraction of the whole population so no wonder houses were aplenty.

Therefore as long as the trend of jobs concentrating in the big cities won't stop or revert, the raise in house prices is inevitable.