I don't think supply and demand would autofix the issue. When a baseline is set, everyone believes it to be the new price. Same as how when a lie is repeated multiple times, it can dangerously become the false truth.

Everyone might believe it is the new price, but that doesn't mean they are willing to pay it.

After years of prices being 'high' yet continuing to rise, they night just accept it.

If they do accept it, that means the market is right and the house is really worth that much to someone :)

> At the end of the day people will only pay what they will pay.

this is empty verbage -- the money supply is run by groups of people i.e. the tender is tendered by tenders. Those comfortable with double-dipping into the cash supplies and using it to boost asset prices, did so with gusto. The rest of society suffers with a small (governing,lending) few benefiting mightily. The "copium" statements by the intellectually uncurious, those who are benefitting, and those that are perpetrating, come off like this vacuous non-statement above.

In the end you can only pay with the money you have. If rents go to a million and you are making $15 an hour you can't pay (no one can) and prices drop.

Keeping adding people and not housing supply and prices will go up. Remove people and add housing supply and prices will go down