Ezra Kliens new book why we are divided asserts that rationality is also an emergent phenomena, individuals post hoc justify even smart ones.
then I am reminded of the nietsche quote about groups being mad and indivuals rational. both positions have good supporting evidence and show we need more specificity, and need to talk about a distribution not just an average.
I suspect there are pronounced peaks accross different group sizes where rationality is more emergent, and of course it depends on lot of factors: subject matter, groups homogeneity, expertise, connectivity probably this is a game theory field of study.
I think luskin's citizens assembly research showed that a few hundred people from a culture, without any prior training, could with the help of domain experts make seemingly excellent policy decisions about difficult moral and technical issues.
Ideally you don't want prices to go down, less we get a deflationary spiral, you want more equal distribution AND inflation to be greater than the interest rate, which reduces Debt burden.
First time home buyers can put down 3% for conventional loan, provided it is not a jumbo loan maybe it should be more aggressive to advantage new entrants who haven't had housing debt during this remarkable rate decline (price increase) over last 40 years... I think we should invert the regressive taxes: prop 13, MITD (trump partly fixed) and capital gain exemption, others?