Don't get too depressed; the value of real estate has been falling for 100 years relative to business equity and other productive assets, and most real estate assets are hugely leveraged today. I somewhat doubt a lot of the debt capital, which is optimized for relatively predictable payouts over long timeframes (with good reason -- this stuff funds pensions and universities) would shift to funding higher-productivity assets if given the chance.

Ultimately, you have to realize that not everyone in the world has the appetite for the kind of high-risk, high-return sort of lifestyle and pursuits that YC founders and partners do/did. A large swath of the population is content to earn their 2-3%/year on real estate, which when levered 3:1 or 4:1, gets up to 10-12%/year, which is a pretty good return in the world of non-VC/non-SV investing.

Source: Piketty's Capital in the 21st century