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One could make the argument that low interest rates suppressed the housing supply crisis.

Housing prices around me is up 25% since 2021 and show no signs of slowing down.

Interest rates aren't high by historical terms. They are about .75 points above the historical average.

Right. Housing costs for most people are a function of asking price and interest rate.

For a long time, we had high asking price and low interest rate. That was mostly acceptable to people.

Low asking price and high interest would probably also be acceptable.

Now we have both parameters (relatively) high, which just sucks. And yeah, supply is the big constraint, no question.