> For proof, look at any rural area and how their home prices have also been skyrocketing.
Yes, it is supply and demand. And zoning is the largest component of the supply function. If you fix zoning, you fix supply, approximately. Outdated fire code, etc. are also important factors.
> or cut down on demand
This is called degrowth and it's how you destroy an economy.
> Japan literally has homes they’re trying to give away.
I'm not sure what point you were trying to make by invoking Japan -- Japan notoriously solved their housing crisis by abolishing the regressive zoning practices at the time and made basically everything one big mixed use zone. The reason why Japan is giving away houses these days is because everyone moved to the cities because that's where the economic opportunity is. And that's where people who contribute to the economy want to be -- where the economic opportunity is.