In real estate cycles, what might contribute to the length of a boom phase?

The length of a boom phase in real estate cycles can be significantly influenced by the slow accumulation of investment funds. When investment funds accumulate gradually, it can create a sustained demand for real estate as investors feel confident enough to enter the market over time. This steady infusion of capital can support ongoing development and investment in real estate projects, which can keep the market buoyant for an extended period.

During a boom phase, the gradual buildup of investment funds indicates that investors are optimistic about future market conditions and potential returns. This optimism can lead to continued buying and development of properties, sustaining the upward trajectory of the market.

In contrast, factors such as rapid development of infrastructure or heightened government regulation on land use may influence the dynamics or responsiveness of the market but are less likely to directly contribute to the duration of the boom phase. Similarly, high interest rates could actually dampen investment activity, as borrowing costs rise and discourage new projects, rather than extending a boom.