ABSTRACT
This chapter documents a number of key points that require attention when designing a methodology for evaluating local market sustainability. At the end of the summer 2008 it was mainly about crisis in the US and then the UK, but two months later it had already reached global proportions. Within the framework of a typical Keynesian critique of monetarism, Baker presents how the financial market is both cause and effect of the housing bubble in the US. The sustainability requirement goes far beyond the green issues, so as to include the cultural, social and economic conditions for real estate market and development. As long as the market analysis concerns the long-term market situation, economic sustainability becomes a natural issue. It is true that when house price inflation is higher than the normal index, the situation is categorised as unsustainable.
