Absolutely it has a relation to its price. A domicile's value in any setting is determined by it's speculative value + a discounted income model. This model wildly decreases the discounted income value without addressing the speculative value.

As far as I'm aware there are more housing units than people in the US. We do have an incentive structure that puts property owners' needs at odds w/ society's needs on multiple factors, and some of them (i.e. NIMBYism) can be addressed orthogonally to the intractability of housing as investment vs housing as housing.