Reply #2: It's bound to happen. The income/price and rent/price ratios were insane. [View All]

[David__77]

Anyone who thought that some magical thing happened in the early 2000s that fundamentally transformed the housing market forever was incorrect. Cheap money led to prices steeply climbing, of course, but the underlying demand didn't change (it's not as if there's a huge population boom), and incomes are stagnant at best. Who in their right mind would pay a $2,500 payment of principal/interest/taxes/insurance, when you could pay MUCH less for an equivalent home in rent? The new generations need access to reasonably priced housing, and trying to maintain high prices does them a disservice.