Luxembourg is one of the countries with the highest household leveraging on private debt and mortgage loans. Since long ago, there is a growing discrepancy between rental costs and house prices, leading to a potential economy-wide exposure to external shocks, such as energy shocks. With real estate being in the balance sheets of households, companies, and banks, the risk of a housing bubble and subsequent burst is systematic: a sudden drop in house prices can trigger a major economy-wide crisis. Concepts and principles on how to detect exposures and how to influence housing-cost dynamics through policy will be presented.