Stocks, bonds, commodities, and other income generating assets are financial instruments.

The price of stocks, bonds, commodities and other income generating assets can fluctuate for many reasons, one of which is an increase in supply.

Housing is a financial instrument. And like any financial instrument, there is a risk of over supply. If the risk goes up, the new price would reflect the risk.

When legislation tries to fix pricing, black markets pop up.

No legislation that does not increase supply will reduce the cost of housing in real terms.