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> if supply is less than demand, no fiscal policy can help

Fiscal policy means government taxation and spending - subsidies for home building would be a fiscal policy and would help.

I think you mean no monetary policy can help.

Even there I disagree. Easy money mostly flowed into the hands of the wealthy, who then bought homes as investments, driving up home prices to the point that average people couldn't afford to buy them to live in.

Or people decide that core coastal metros aren't all they're cracked up to be or that they're willing to compromise on climate/other factors for much cheaper housing prices. There's no real shortage of housing--just housing that is in areas a fair number of people prefer given the choice.

Fiscal policy can help slow growth, but prices will always go up in high demand markets.