Take a look at the charts on pages 5-6:
In the UK and France, home to two of the most supply constrained markets (Paris and London), nearly all of the increase in capital to output ratio is due to the spiking value of housing. There’s no reason for this to be the case whatsoever. The high cost of housing is an economic rent and does no one, except its owner any good. Time for it to go.
Edit: Page 23 shows the same chart for the USA. Housing has been growing, albeit at a slower rate. Other domestic capital is an additional large driver of Wealth:Output unlike in Europe