If everyone has access to ultra low rates, housing supply prices rapidly increase to match demand, and you reach a new equilibrium (albeit with higher price:income multiples).

So it’s not papering over anything — it just goosed housing prices higher.

Now we're currently papering over the resulting sky high asset values by allowing inflation to erode the relative value of the sky high real estate.

That will only be true if inflation in non-housing accelerates and housing prices stay constant, which seems unlikely in a supply-constrained market.

In any high-inflation scenario, real assets are likely to be highly attractive. Where else? Bonds, death. Equities, only if the economy keeps humming while inflation persists. Gold, bad price appreciation.