Housing oversupply = strawman. Problem for the last 10 yrs has been slack wage growth. Any number of explanations/causes for it, but that was the root issue with the massive credit expansion and collapse of the housing market.
Prices still being held too high relative to wages. Properties need to revalue, or real wages need to grow before the market will recover.
“Prices still being held too high relative to wages. Properties need to revalue”
Not going to happen when a small city lot is $100k up and the up front fees to build a home are over $50k before you get a permit.