I think this story argues with your other story about how the 'This Real Estate Bubble Won't Pop'. Seems like you are arguing with yourself!

But there are three things you didn't consider:

1. Real estate is the main way the average person engages with capitalism. The three main ways to increase capital are stocks, owning a business, and owning real estate. As the U.S. fed has pumped billions of dollars into the economy because of the pandemic it needs to go somewhere. First it was the stock market, but now it is the housing market.

2. During the pandemic people moved out of cities and apartments to smaller cities and bigger houses. People who once worked out of offices in cities are now working from home. This demographic shift shows no signs of abating. Thus the need for more housing.

3. As people's houses are worth more, they are taking 'cash-out' refinancing, then using that money to buy new cars, second houses, etc... . This is the real reason the economy is growing, people using the value in their houses to buy more.

This is creating real winners and losers from the pandemic. Winners: home owners. Losers: wage workers who rent.