Housing is not in a bubble. This is not 2007, the US has chronically underbuilt since the great recession and we are seeing th results now. The sky high prices are from a genuine shortage. Younger millenials and older Gen Z want to ditch their room mates and/or stop living with their parents. There is no housing supply for them to do so. On top of that WFH has increased the demand for residential housing.

This is also not a shortage that will ease anytime soon. The market can't respond to the demand by building more units when building more units (where people want to live) is illegal. Take Charlotte NC for example, inside the city limits of this major city 86% of land that is zoned for housing is zoned only for single family homes. Recipe for shortage and car dependent sprawl.