Earlier quoted context omitted.
So demand massivley outstrips supply. If people aren't living in such horrible circumstances (crime, homelessness, drug abuse), why is demand so high that houses are unaffordable?
I don't know if you've been in California recently, but in the East Bay at least a large number of small businesses have closed down and formerly vibrant places now look like homeless encampments. I used to feel comfortable taking out my phone even after dark on BART, now I don't. The economy might still be chugging along but it's not chugging along on the back of the big cities with ultra liberal takes on crime/home…
Despite the positive things I said upthread about the long-term trends, there is a very acute short term issue caused by the interaction of the inadequate response to the aggregate and distributional impacts of the pandemic with the preexisting housing affordability issue that is going to become a major long term problem if it isn't addressed.