Housing scarcity in desirable locations (places with jobs, airports, music venues, etc. ) is never going away.
“Never” is a long time. Demographics drive housing costs more than interest rates. Millennials are having kids right now, so they are going to want to move out of expensive cities to larger acreage soon. Gen Z has even less money than millennials. Plus, boomers are retiring and will soon be selling their places downtown that they bought for a song in 82.
So we have:
Boomers - leaving cities for retirement communities
Millennials - leaving cities for smaller towns with more room
Gen Z - stuck 10 to a room, unable to purchase anything
Who’s going to be buying expensive places in cities?