A decade ago, I lived in an area where people lost houses left and right. One neighborhood had a 50% foreclosure rate. Those people all lost whatever equity t

A decade ago, I lived in an area where people lost houses left and right. One neighborhood had a 50% foreclosure rate. Those people all lost whatever equity they had and home prices have gone up significantly since. Of course more people are renting. If they have managed to save the down payment required, they have to question whether they could really afford that property again. Most haven't because rents are higher than their mortgages used to be. Who can save $100K+ in that situation? And if they could, where is that $500K house that you can buy with 20% down? Probably not in the same area where you have a job that allows you to save $100k. The government is propping up the banks which are propping up the housing market. We'll see a little pop in the next 24 months, but it will be a quick one because it will release some of the hold backs that are in place today.