A housing bubble requires 3 elements. The 2022 housing market has hit 2

Three components are necessary for a housing bubble, according to academic definition. First, the housing market would experience a frenzied demand that was fueled by speculative activity.

Second, rising housing costs would exceed what earnings could bear and reach overvaluation levels. Third, property values decline as the housing bubble bursts.

The housing market had already satisfied the first two requirements by the time the 13th season of "MTV Cribs" premiered in 2006 and, unbeknownst to the general public, was rapidly approaching the third.

Let's jump ahead to 2022, when the Pandemic Housing Boom has driven up housing prices in the US by an astounding 41.6 percent since January 2020

Economists are baffled by the quick increase in property prices (which is significantly more than the 4.4 percent recorded in a normal year since 1987).

The Pandemic Housing Boom satisfies some of the requirements for becoming a housing bubble, although not being supported by the risky mortgage instruments that propelled the last bubble.

The company seeks to ascertain whether underlying factors, such as regional income levels, could sustain regional housing values.

Only when a house market becomes sufficiently "overvalued" is it problematic. That was the situation before the 2008 crisis.