The problem is that interest rates are too low. 5% interest rates would fix house prices (and other capital mis-allocation). The reason why lots of boomers are

The problem is that interest rates are too low. 5% interest rates would fix house prices (and other capital mis-allocation). The reason why lots of boomers are sitting on large amounts of housing equity is that they bought before the transition to low rates. The reverse will also hold - anyone buying now before the transition to higher rates will get clobbered (in terms of loan to equity - probably they'll be ok repayment wise so long as they have a fixed mortgage)