In the US there are numerous incentives for buying a home. Your interest on your mortgage is tax free, the government offers cash back, etc. Renting gives most of these incentives to the landlord instead and they aren’t necessarily passed onto the renter. Most importantly, this means that if you have cash to invest, real estate has favorable tax treatment compared to other options so you suddenly have turned housing into a market that must rise decade over decade or the economy will collapse.

The way to fix this is painful but it is to revoke all incentives and to make people put down 25-50% as down payments. It will cool the market to near absolute zero short term but it will help long term in keeping housing to actually be housing.