There are some truth. 1) US population always increase, does not translate the price increase, For instance, in OHIO, Indiana, the price of house been going down even the poplulation increase in these area. Remember, during the internet bubble, Tele communication companies made lots of money, what happen now?
2) Housing price can go up only when income keep up, the real income is going down over last couple of years, the only reason the housing price going up because mortage companies issued loan lots of money to people that not suppose to take these loan. We have interest only, 1% loan for the first year, that can not go forever. Realistically, how many people can afford 500,000 house. In our area, you need to pay close to $6,000 just for property tax alone. So you can pay interest only, but you can not get away the property tax payment. Some one would pay 90,000 premier for golfer view, how many people could afford that way.
3) I owned two small apartment in midwest, in my area the housing market been going up 10% every year over last couple of years, yet the rent was actally going a little down over last three years even my cost went up(Insurance, maintenance), I sold one apartment earlier this year to someone who would convert the building into condo. Something have to give in a long long, either the rent will go up or the housing price will go down. If you can rent a two bedroom apartment for $800, the same condo would cost at least 180K, so the interest payment itself would be 900/Month, plus association fee and property tax, it would cost you at least 1200/Month.