As wild as the housing market currently feels, I tend to agree with the author that we are nowhere near 2007 levels of overextension. Here's a chart that comple

As wild as the housing market currently feels, I tend to agree with the author that we are nowhere near 2007 levels of overextension. Here's a chart that complements the data presented by the author, showing that there is still relative demand for housing as a place to live at current prices, relative to the last few decades: https://fred.stlouisfed.org/series/RRVRUSQ156N https://fred.stlouisfed.org/series/RRVRUSQ156N So there are two problems. One is addressed by the author: build more homes. There aren't enough. Can the federal government do this? Probably not; it's more of a local zoning thing. But while the author touches on high construction costs, they miss an opportunity to identify the most dangerous root cause: inflation. While CPI might say the US has only experienced 2.6% inflation since the pandemic began, that number is faulty beyond repair. Random length lumber futures are up 200% since the pandemic began. Copper and soybean futures are both up 60%. Industrial steel is up 133%. Industrial silicon is up 70%. Sunflower oil +114%. Wheat +20%. Platinum +29%. Gold +20%. Aluminum +32%. Energy futures +30%. Natural gas +42%. SPX is up 25%, despite almost certainly being less productive. You get the idea. Historically, there is a modicum of hysteresis to prices at the early onset of hyperinflation, especially in a large economy like the US with multi-year contracts at pre-defined prices. But when the raw materials are are growing in price by 30%+/annum for all of your products, consumer prices are sure to follow. This is a historic moment. While the government has had to choose between more severe short term recession and long term debt/wealth inequality many times before (and usually chosen the latter pair), the decision in 2021 feels different. Inflation is already here. The money printing has been unprecedented, and the only way to avoid real inflation will plunge millions into unemployment. Do we have the political will to forestall a major inflation catastrophe?