I imagine if you’re willing to live four to a bedroom things get substantially more affordable. There are plenty of people who are willing to do that, though fewer in the legal economy. If building housing was legal that demand would be satisfied by new building but that’s democracy for you. The people get what they want, good and hard.
I’m not sure you can treat the lack of affordable housing as an indictment of democracy as an institution. Of course there’s more nuance to the issue, but it’s not as simple as people get what they want.