Taking a bath on a home sale isn't the only solution. Make it easier for people to build houses. The majority of old houses were built by the first owner. They bought land and built a house the way they wanted not following thousands of regulations dictating how a home must be built. If you build a shitty house, well, good luck selling it. If it falls down thats your own damn fault. All of the ways we have learned over time that houses can be built better should just be shared knowledge and recommendations for somebody wanting to build a house. Every requirement a builder must follow means it costs more to build and less people are capable of following all the rules. Where I live if you build something that doesn't follow code you get fined for every infraction. That's a disincentive for people to build.
Remove costly regulations and you get more houses.
Remove costly regulations and you get more houses.