...and the expectation of rising prices. Besides, we're being told that we all need to be more fertile (actually "fecund"), and have lots and lots and lots of American children (whatever that means). If that happens, we're still going to have increased housing demand, right?
The cost of renting a home gives impetus to buying a home. The demand for / availability of homes determines market price. Market price determines tolerance for price of construction. Price of construction determines cost of replacement, and thus insurable value. Highly-skilled labor makes up the vast majority of the labor budget. Home building requires numerous specialists, including framers, electricians, plumbers, and HVAC technicians, whose expertise commands higher wages. A shortage of skilled workers in the industry has also contributed to rising labor costs. Menial labor for site prep and cleanup, drywall, roofing, painting, and carpet/floor/tile installation constitutes a much smaller portion of the overall cost compared to the skilled trades.