You really need to look at real prices, rather than nominal prices. Housing is after all the largest component of CPI, which determines inflation.

Scarcity also does not guarantee value. For one thing, housing demand is baseline proportional to the number of people. Population growth is really slowing [1]. The decades of home price gains might mostly have been due to a population surge, which is ending.

[1]: https://www.census.gov/library/stories/2021/12/us-population...