"Cheap credit simply puts rocket boosters on demand in an already supply constrained market." - Bingo. It& #39;s not that cheap credit turns homes into assets - it& #39;s the rationing of homes by planning that turns them into assets. Cheap credit merely deepens this. https://twitter.com/redbrickblog/status/1298208559012995073">https://twitter.com/redbrickb...

Shortages give ordinary consumer goods asset-like qualities. Mayonnaise was an asset in the Soviet economy, that people would speculate on and trade for other goods and services - but because they didn& #39;t have credit, mayo just disappeared from the shelves. https://www.nybooks.com/daily/2017/12/30/a-soviet-new-year-with-mayonnaise/">https://www.nybooks.com/daily/201...

Another way of thinking about it - why isn& #39;t all that cheap credit being put to work financing the construction of new homes, instead of just pushing up house prices? Because planning& #39;s rationing of homes prevents supply from responding to demand for more in certain cities!