Tying the mortgage repayment rate to the median salary of a single individual would go some way towards fixing things then, but that would mean putting price caps on houses which would devalue the currency and also need anti-cartel laws (eg. Laws mandating a maximum amount of homes one can own, as cartels might see artificially low prices as an opportunity to buy up more houses).

Artificially constraining parts of banking and all of residential real estate is likely to have other unforeseen effects on the economy, but may still be worth it.

Another alternative is starting a state bank in which citizens can be part of a rent-to-own mortgage, with minimum but achievable life time repayments. If they don’t meet those minimum payments, the house is sold and the profit from the sale is portioned out between the state bank and the mortgage payer in proportion to how much % they paid off.

That’s a win win, as theyre probably getting a big cash payment when struggling, and the state bank then gets to relist the home.