As our economies have become more productive, non-scarce goods like electronics have become cheaper. But that wealth creation gets put into scarce store of value assets like housing. Special tax treatment and government protection, and a culture of house investment, add fuel to the fire. Regulations that prevent private supply, and a lack of will to build public housing, is more fuel on the fire. In the late-stage of the cycle, a majority of the electorate is staked in this perverse system, creating the fait accompli where democratically elected politicians are bound by the voter to perpetuate the pathology, soon they will resort to populist solutions like rent control which will increase house prices even more. Within a democratic context there is no clear mechanism that will cause us to change course.