I think that it is one of the driving factors, and that the experience of the housing bubble confirms it. I live in sleepy Albany, NY, which as a state capital

I think that it is one of the driving factors, and that the experience of the housing bubble confirms it. I live in sleepy Albany, NY, which as a state capital and small city it is a pretty stable place. No boom-bust cycles at all -- it's always "ok" in the region as a whole. House prices that were stable from the mid 80's to 1999 suddenly went mad, up to the median income in the area for the legions of state workers. If you tried to buy a $200k house, there would be a bidding war minutes after the sign went up... but not much above $250k.