Comment by mikhailfranco

Apart from the local housing supply/demand and NIMBYism there are 3 financial factors:

- artificially low interest rates (since 1990, and esp. since 2007)

- exemption from capital gains tax for primary residence, which is the main reason why property is used as a pension scheme

- mortgage interest tax relief which makes debt tax efficient; phased out in the UK, but still available in the US

https://en.wikipedia.org/wiki/Home_mortgage_interest_deducti...