Low inventory and surging demand have sent house prices soaring around the world, raising concerns about how long the red-hot market can be sustained.

What’s happening: The International Monetary Fund’s Global House Price Index, which tracks 57 countries, has surpassed its prior peak from 2008. According to Oxford Economics, house prices are growing at over 10% year-over-year in many major economies.

The frenzy is boosting stocks exposed to the sector. The iShares exchange-traded fund tracking residential real estate is up 23% in 2021, significantly outpacing the S&P 500.

AvalonBay Communities, which develops and manages apartments…

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