Inequality results in higher asset prices. They commodified housing and allowed massive inequality. Now housing is expensive.
This happens because if you have more money than you can spend you start looking for things to buy. Houses and land, for instance. The neoliberal hope is that hoarded wealth will trickle down through investments. But there really isn’t enough money-making enterprise for the billions available, so rich folks start buying up assets, which become super expensive.
To be clear, I’m not saying there’s more money than can be wisely invested. I’m saying the money is concentrated (often into the hands of the least discerning) and not efficiently distributed for utilization. If normal folks had extra cash, they might start a small business, but billionaires aren’t looking to open a trattoria or book store. They don’t have time for such minutiae, so they buy up land or gold or get into crypto schemes or some harebrained bullshit.