Reducing home prices requires destroying an entire branch of economy - real estate investment. Mind you not construction but owning property as an investment. It would noticeably drop the GDP and any other economic statistic as well as leave a bunch of people without jobs.
I guess in the mind of most politicians it’s not an acceptable course of action, even though avoiding it makes things worse in the long term.
You severely underestimate the role of real state in the current economy. Banks, investment funds, pension funds, real estate agencies, insurance … Individuals looking for passive income are just a part of it.
Especially in North America, Europe and China (but true everywhere generally) real estate speculation takes a huge chunk of investment money of both individuals and companies.
It’s not, except as an afterthought. It’s not me inventing these statistics