Prices have risen with falling interest rates. They will fall with rising interest rates.

Zoning is a smaller part of it (though more significant in some areas than others).

I see how low interest rates increase demand. But in my opinion the lack of supply is a much bigger issue. Most people have most of their net worth in their homes, and spend their political will ensuring nothing new is built. That and related phenomenon I put under a broad “zoning laws” statement. We need to incentivize building more, taller. That’s it.

You can change zoning laws tomorrow (California just did) but that won’t create any housing. It needs to be constructed at an affordable price.