Look at Japan- their housing is surprisingly affordable in Tokyo despite being in a major city. Due to flexible zoning laws, houses can be built almost anywhere. Houses are deprecating assets, like cars, rather than investments, like houses in America/Canada/etc.
So, if I understand you correctly, we need to make houses not "commodities" in an investment sense. But doing so requires producing a lot more housing. That may mean making them "commodities" in a colloquial sense - that they're ordinary, pretty much interchangeable. (Most people, most of the time, don't care very much which brand of potato chips someone brought to the party...)
Look at Japan- their housing is surprisingly affordable in Tokyo despite being in a major city. Due to flexible zoning laws, houses can be built almost anywhere. Houses are deprecating assets, like cars, rather than investments, like houses in America/Canada/etc.