From the 1980s, after the financial liberalisation which, among other things, ended the trading banks having separate savings banks, the housing market was first in Minsky’s Hedge Phase. Borrowers still serviced their mortgages but they were now getting a good return from the capital gain from the faster appreciation of housing prices. By 2007, housing prices were about 50% above the trend of the 1990s relative to consumer prices. From 2014 the housing prices began moving up again. Again there was not much increase in the housing stock, so the price of housing went up dramatically.

Source: The Guardian February 26, 2023 22:40 UTC