What Drives Housing Booms

Explain why housing markets accelerate and how policymakers can tell the difference between healthy demand and a bubble-like surge. Break down the roles of interest rates, household incomes, rental shortages, construction costs, zoning limits, investor activity, and regional inequality. Then compare three response strategies: building more supply, cooling speculation, and protecting affordability for first-time buyers and renters. Conclude by outlining which indicators matter most for judging whether a housing boom is sustainable.