"The main issue is that housing was turned into investment vehicle."
yes, but that became a great investment because housing is chronically undersupplied, and this happens because it's a nightmare to build hew houses, which in turn happens because old "environmental" regulations that have been hijacked by NIMBY groups.
At the end of the day, you need to build houses. And you must do it in two ways. First, get rid of stupid regulations so the market can actually do its part and build houses without having to jump through regulatory hoops for 10 years. Second, leverage the local and federal government to actually take control where it can and freaking build houses. Won't hurt.