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Overpaying for luxury homes is not the core of the problem. In any event, most of the "overpaying" comes from self dealing resales to establish a new and higher baseline.
The problem is that the rents to support cost of construction or acquisition today are at least double or triple what the middle class can afford. That's solely because we have far too many undervalued dollars chasing a basically stable supply of goods.
The states are to blame for subsidizing them at the expense of citizens.Too many illegal aliens chasing a basically stable supply of rentals.