[onlyrealcuzzo]

Housing is a debt market. Houses don't cost 10% more just because prices have increased 10%. Manipulatedd interest rates have made debt service 15% cheaper. It's not that simple. Sure, you need 10% more for the down payment - I'll give you that.

[epistasis]

The other specific thing about mortgages and other debt is that banks are a source of new money when they create loans. Banks do not even have to have a fractional reserve on hand any more, and have far more flexibility to create money as long as they can survive the stress tests. Which means that banks are far more in charge of the money supply than most acknowledge.

Which can cause a huge amount of inflation in housing, if there's not enough of it to go around for extended periods of time.