Traditionally talking, the ongoing housing increase is an anomaly. Above the past two decades, U.S. residence charges have soared 34.4%—including 19.8% over the previous 12 months. For point of view, household price ranges have risen on common 4.6% for each 12 months considering the fact that 1987.

Though the very hot labor industry has place upward force on incomes—with personal sector wages up 4.8% in excess of the past calendar year—it isn’t really mounting quick more than enough to account for the uptick in household rates. That disconnect has lots of in the real estate field on edge. A housing current market that has grow to be detached from financial fundamentals also has a lot more economists posing the bubble question: Are we staring down yet another 2008-like housing bust?

That is anything economists at Zillow have been investigating. On Monday, Zillow posted a paper declaring that we are not inching towards a housing bubble or crash. They also argue that housing bubble fears are basically producing issues worse and could push home selling prices even larger.

“The expectation of another [housing] crash could lead to holding houses so unaffordable. Builders have been firing on all cylinders, and with far more homes under building than any time given that 1973, they understandably sense uncovered in the event of a housing downturn. If they trim their design options out of caution, we will skip out on a single of the most effective hopes we have for net new inventory on the sector, and the inventory crunch that’s aided drive price ranges up will persist for extended than predicted,” compose the Zillow researchers.

Basically place: Zillow researchers think if homebuilders decrease production out of housing crash fears, it could retain inventory amounts suppressed. Of program, the absence of stock has been between the key drivers of the ongoing housing growth. The actuality that property shoppers significantly outnumber homes for sale provides potential buyers very little selection but to engage in bidding wars.

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It’s easy to understand that the ongoing building and housing booms have so many U.S. homebuilders emotion uneasy. Following all, the past U.S. housing crash saw homebuilding go into a ten years-very long slump. At the top in 2006, regular new housing starts off peaked at 2.3 million. About the coming several years, new home building stored slipping till bottoming out at 478,000 in April 2009. That period set lots of homebuilders and subcontractors out of organization. Companies that did endure have been humbled and have considering the fact that adopted a lot more conservative enterprise approaches.

Though Zillow won’t feel we are in a housing bubble, other individuals are not so guaranteed. Back in March, the Federal Reserve Bank of Dallas put out a exploration paper titled Serious-Time Market Checking Finds Indicators of Brewing U.S. Housing Bubble. The Dallas Fed scientists found residence charges are increasing a lot faster than fundamental financial info must assistance.

“The gap in between the real price tag-to-lease ratio and its essential-based level in the U.S. has grown rapidly in the course of the pandemic—comparable to the run-up of the past housing boom—and started off demonstrating signals of exuberance,” compose the Dallas Fed scientists. However, they go on to say if a housing correction does appear, it shouldn’t resemble the 2008-style crash and the foreclosure disaster that adopted. Unlike the 2000s housing bubble, homebuyers these times are in greater financial shape and must be far better well prepared to climate an economic storm.

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That Dallas Fed paper is rarely an outlier. More than the past thirty day period, Fortune achieved out to researchers at CoreLogic, Moody’s Analytics, and the True Estate Initiative at Florida Atlantic College to get their regional examination of U.S. housing marketplaces. Seeking at the data via a historical lens, researchers at individuals organizations tried to remedy if community house costs are overpriced relative to neighborhood incomes. Researchers at Moody’s Analytics labeled 96% of regional housing markets as “overvalued,” when Florida Atlantic University finds 100% of housing markets are “overpriced.” Meanwhile, CoreLogic’s facts (see chart higher than) labels 64% of regional housing as “overvalued.”

Mark Zandi, chief economist at Moody’s Analytics, agrees with Zillow’s assessment that the U.S. housing market place is not in yet another housing bubble. Zandi tells Fortune that a housing bubble involves both property selling price overvaluation and speculation driving the current market upward. Though the current market is overvalued, he states, it doesn’t look to be pushed up by speculation this time.

That reported, Zandi does imagine that U.S. dwelling selling price development is about to flatline around the coming calendar year as spiking mortgage loan prices price out more homebuyers. But that financial shock brought on by higher mortgage loan fees will damage some markets a lot more than other individuals. Zandi predicts that particularly “overpriced” housing marketplaces, like Phoenix and Charlotte, could see 5% to 10% price declines.

Zillow disagrees with Zandi. The house listing web-site is forecasting that U.S. residence charges are poised to rise 14.9% between March 2022 and March 2023. The explanation? They think homebuyer need, underpinned by a demographic wave of millennials entering the market place, will go on to outmatch source. Even if their forecast proves erroneous, they’re very skeptical property selling prices could tumble by significantly.

“If costs did start off to tumble, we know there are thousands and thousands of stymied to start with-time prospective buyers, or youthful millennials shortly to be aging into that predicament, ready in the wings to snap up properties if they see a cut price,” compose the Zillow scientists. “All those initial-time potential buyers will keep on to experience the strain from rising rents, which jumped 17% in just the past 12 months. And a frequently large-inflation natural environment will hold homeownership searching interesting as a hedge from inflation.”

If you’re hungry for extra housing information, observe me on Twitter at @NewsLambert.

This story was originally showcased on Fortune.com