Yes, the unfortunate thing is this is almost certainly NOT a housing bubble - this is just years and years of banning housing construction coming home to roost. I almost wish it were a housing bubble as that's probably easier to dig out of than to build 7-10 million new houses.
We need state governments to step up and do the right thing for their citizens and remove local control of housing regulation. First step would be to make any area zoned residential by right construction of unlimited density along with the abolition of all parking minimums.
So you get a bunch of suburban apartments with no parking, built next to neighborhoods. So all the apartment dwellers would park along the neighborhood streets, making the roads less safe for everyone.
I agree with you that the current control needs to change drastically, and parking minimums should also mostly go away. But the solution to really shitty short sighted planning, isn't no planning, it's better planning. Right now, today it makes no sense to built a 500 unit apartment complex in middle of single family neighborhood in Glendale, CA with no parking. It also makes no sense to build single family neighborhoods next to mass transit, highways, and dense commercial areas.
But housing pricing have almost doubled in a decade where I'm at, and there is plenty of land and construction of apartments and SFH. Zoning laws aren't preventing new construction here, yet prices have shot way up.
ETA: I really wish we could get away from cars and getting rid of parking minimums in urban and/or well served areas is a good way of starting that transition. But you also have to balance businesses and housing just creating a big externallity for the community. Removing cars is a huge chicken and egg thing, and I don't think it happens just by making new housing without parking so the people that have to have cars to live there just park elsewhere.