Matt Ridley, in "The Rational Optimist", asks the question in the first few pages, why housing has not fallen in price relative to incomes, like most manufactured goods. He says this is because of government involvement. He has a good point.
The real price of housing HAS fallen in all the US cities where government does not interfere with the supply of land for housing. The price of farmland has been falling relative to incomes, for decades; it is now around one quarter of what it was 60 years ago. Therefore, the price of lots (per square foot) on the urban fringe has fallen too, where government lets it .
Govt messing with "services" also prevents price-efficiency gains.