Wow. This is what happens when it's too easy to borrow money.
Possibly, but only easy to borrow money to buy homes...rather than build more homes, otherwise that'd drive prices down.
There's lots of development, but it takes time to see the effects of that. The recent spike in prices has been extremely fast, up by 20% in 2015. Also, the city has to approve any increases in density, which doesn't happen overnight. Faster than silicon valley, though.