To understand the magnitude of the housing bubbles simply compare the index of wages to the index of prices.
How Did We Get Here?
Average Wages vs CPI
Note the correct CPU comparison for this chart is CPI-W not CPI-U, not that it matters much.
No matter what official CPI one uses, the chart is a joke. Why? The CPI only reflects rent, not actual housing prices.
The Fed made this mistake during the housing bubble and they made it again from 2011 to present.
More bubbles will burts and that is very deflationary. By chasing its tail, the Fed creates the very conditions it seeks to prevent.