The prices are actually only falling in areas where it's possible to build more houses. In those areas, the price of housing must eventually fall to the margin

The prices are actually only falling in areas where it's possible to build more houses. In those areas, the price of housing must eventually fall to the marginal cost of production. In areas where zoning laws and density make new construction very difficult ( Boston, San Francisco, Seattle, New York) housing prices remain very high. Houses have essentially become collectibles ( like paintings or baseball cards). Because you can't create more of them, the price holds up against an inflating dollar.