If a house is all I needed I could just move out to some 20km away location and get one for 60k€. You would have to do your own renovations but isn't that part of the deal when you buy a house? But I will concede that automation increases productivity and gives us access to more goods and services. It's absolutely necessary.

I don't think building costs are the main issue with availability of housing. You need the land to build on - and not just any land, but land in desired locations.

How are the artificial mega cities in China doing? Didn't they build several cities from scratch that are supposed to house several million people each?

That's why the ability to work from home is important. Sure there will still be expensive cities, but living on cheap rural land will be much easier.

sure but why would you want to live somewhere rural?

Plenty of people would like to live somewhere rural but can't because of work. Obviously not everyone falls into this category, but lower demand in cities = lower prices.

Most of those cities are filled up or filling up, so maybe there is something more to building new cities when WfH becomes even more viable.