In the bay area for example it doesn't make ANY sense to buy right now (Price to rent ratio, google it) but still people are flocking on every shitty apartment on sale. That's because they want to feel that little ego boost when they say they are "homeowners".
All the sfba homeowners who bought for cheap but are now sitting on millions of dollars of property could easily make a tidy sum if they were willing to sell for less but they will feel like they left money on the table. Ultimately when the bubble pops, everyone will sell for less but they will all think it’s perfectly rational because the “market is down”. I don’t get that perspective at all. Buy low and sell high, within reason.
I'd also argue that most other assets are also highly inflated. The P/E on most tech stocks for instance looks a lot scarier than the overall real estate market. I'll add that people have been saying the Bay Area housing bubble will pop for over 30 years. It hasn't yet.
There is a huge lobby in society to convince you that owning a home is the way to go (banks, real estate agent, other homeowners and people repeating this nonsense all the time). Don't let this fool you and make the calculations before buying anything.