The problem with cost of living for many Americans is the uncompetitive natural of the housing market as there will always be more and more demand.
Main problems of housing is the idea of rental properties generating cash flow on mortgages. There should not be cash flow on mortgages. At most it should be break even or lose money on mortgages month to month as the payout would be the value of the house. If a 1500$ a month mortgage only has a 1000$ rent the landlord is still generating 1000$ a month just not in immediate cash flow but as a asset. As long as property value continue to b/e or increase this is your risk/reward.
I think government limitations for rental properties and housing is very reasonable on any scale. Current concepts are abuse of the middle class
Edit: Including the maintenance, upkeep, taxes, downtime, etc… I thinking the valuation of rent should be around the same as what the mortgage would be at that time ex. Value of property X 3.5% ÷ 30years or very close too.