There are a number of reasons why homes are expensive today and it's not just "social programs bad".
There are a number of reasons why homes are expensive today and it's not just "social programs bad".
Financial instruments that aim to make home ownership more accessible tend to become subsidies to people who don't need them. If people can afford to pay more, homes become more expensive. But those who don't need a mortgage pay less for the same home. Those who can afford a shorter mortgage pay less. Those who can afford an adjustable rate pay less than those who pay a premium for a fixed rate.
When people go on about the need for affordable housing, they’re not asking for the 1940 model described above nor for 200 sq ft urban rabbit warrens. They want the big house/good lot house with a good commute for little money. And probably a pony.
You must not live in an HCOL area. In my city, a 1000sf 100 year old house, no garage, small lot, is going to run you at least 800k. I would be perfectly happy in one of those houses, but not at that price point.
If people really want cheaper housing, they need to provide remote work or well distributed satellite employment
Your second comment implies that the costs of land, permits, inspections, etc outstrip the actual construction costs to the point that building smaller is disincentivized