Don't forget large scale purchasers using property for tax evasion, money laundering or other such uses. They largely don't even care if the property is maintained.

(eventually properties collapse, but if they keep the values inflated this way, that won't matter to them)

If you want to know more, look into RCMP reports on high property prices in Vancouver BC/Canada circa 2010s+, for example.

If majority of housing is owned for profit by REITs or landlords they have such a leverage over ordinary person, that they can indefinitely hold the prices/rents at a level where they extract maximum of available resources from owning land while making sure people have enough processed food and cheap internet-provided entertainment that they don't rebel.

The prices will adapt, but the equilibrium will always be elite-oriented economy where accommodation of the masses is a second-tier goal.