True, but it would be unlikely that they’d be so cheap they would be affordable to many people who couldn’t sell their house.

I’ll admit I didn’t do a good job explaining this. Basically, what I assume would more than likely happen is, for a while, most people would just end up having a large amount of roommates to afford there houses. This would however cause housing to become cheaper over time as it would decrease the demand for housing for many (many Americans would be okay with this) however it wouldn’t decrease the supply. It would take a while for housing to reach affordable rates, don’t get me wrong. But it would happen after said a while.