This situation is perhaps the finest example of the self-licking ice cream cone.
Consider:
* “The community” (houseowners) own the present stock of houses;
* The price of a house is driven not by materials or labor, but by supply;
* The supply of houses is controlled by the houseowners.
But it gets better. If houses cost more, not less,
* The local government gets more money from property taxes;
* The banks get their cut out of interest on the loans;
* The employers (corporations) keep their employees on the treadmill;
* The state and federal governments get their cuts from the income taxes.
We have the technology. You could probably buy a mansion for $100k if it was in literally anyone’s interest besides the line-level worker.