"Cheap credit simply puts rocket boosters on demand in an already supply constrained market." - Bingo. It's not that cheap credit turns homes into assets - it's the rationing of homes by planning that turns them into assets. Cheap credit merely deepens this. https://twitter.com/redbrickblog/status/1298208559012995073

Shortages give ordinary consumer goods asset-like qualities. Mayonnaise was an asset in the Soviet economy, that people would speculate on and trade for other goods and services - but because they didn't have credit, mayo just disappeared from the shelves. https://www.nybooks.com/daily/2017/12/30/a-soviet-new-year-with-mayonnaise/

Another way of thinking about it - why isn't all that cheap credit being put to work financing the construction of new homes, instead of just pushing up house prices? Because planning's rationing of homes prevents supply from responding to demand for more in certain cities!