This isn't an unexpected result of political incentives: Property owners want housing prices to go up, so they want to limit supply. Builders want to make more money, and their two ways to do it are to build more housing or make more money per housing unit.

The thing that satisfies both of them is regulations that increase the cost of construction. The builders get to put the money in their pocket (bill for more hours on the same house) while raising the price and so discouraging more housing from being built (so the landlords get to keep collecting high rents).

At the end it’s this. People who speculate have the money to pay lobbyists to encourage politicians to bring in regulation that drive prices higher.

The houses are made in a cheaper way though. Just look at old houses.

I believe a more major cause is that people in general are not handy anymore. They don't do their cars and don't build their homes.

Comparing housing prices today with the 50s is like comparing restaurant pricing to a home dinner.

Regulations are probably not to blame (except zoning).

I have not listened to the podcast. Do they talk about the value added going down because labor has disappeared into devices and systems?

Like with spray foam insulation. If it is done at the right time, lower skill labor can install that better product a lot faster than carpenters can install batting.