Since 1997, the housing market has been spiralling to unaffordable heights, spurred on in part by not only low interest rates, but also a lack of affordable housing, which itself is accounted for by a failure of microeconomics whereby supply does not meet demand.
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I would make some minor changes to make it clearer. Or you could simply break it into shorter sentences. Here are examples of the two approaches: Since 1997, the housing market has been spiralling to unaffordable heights, spurred on not only by low interest rates, but also by the lack of affordable housing caused by the [microeconomics] failure of supply to meet demand.
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I would make some minor changes to make it clearer. Or you could simply break it into shorter sentences. Here are examples of the two approaches:
Since 1997, the housing market has been spiralling to unaffordable heights, spurred on not only by low interest rates, but also by the lack of affordable housing caused by the [microeconomics] failure of supply to meet demand.
OR