>>213598502
In USA, its varies based on metro area and region.
The main reason is simply that construction productivity has lagged behind other sectors. People in USA spend very little today on food/clothing due to how cheap those are, which frees up income to outbid each other in the housing sector.
However, I would also blame zoning laws, especially in many metros in the USA. Many municipalities make it very difficult for dense development to happen, which leads to an undersupply. Liberalizing zoning laws, parking requirements, building codes are the best thing a local government can do to help with housing supply. There's not much local governments can do about material and labor costs, but they can do everything possible to get out of the way of developers.
But not all are failing to meet demand, many cities in the south are meeting demand perfectly fine. My city was doing great and has had stable slightly falling rent the past 3 years despite heavy migration from other states but will likely experience rent hikes next year due to interest rates remaining high and the tariffs/immigration crackdown doesn't help.