The plain fact is, housing became too expensive compared to peoples incomes. This has been the case for almost a decade. It was explained away by lower interest rates, lower taxes, tax concessions, that sort of thing.

Don't even think of buying until rental yield exceeds what you would pay on mortgage interest rates, plus some. As recently as 1994 I was able to pick up a canal side apartment in Little Venice, London on this basis. Damn fine investment, and same story- early stages of recovery from the previous real estate bubble.