I live over 90 minutes away from DC in rural Fauquier County. Even small apartments out here are $1000 a month and 2 level, 3 bedroom townhouses are $250,000.
It's tough going in this area. The choices are either go into debt big for a small starter home or commute for 2 hours each way.
Or MOVE to a more realistic area. I am no stranger to rediculous markets, I had to pay $2500 a month for a 3 bedroom ranch of about 1500 SQ FT when i was in Cali... of course I made well over 6 figures a year too.
$1000 a month would have been a steal there.
I openly admit there are bubbles, mostly created by idiot buyers who pay too damned much for things... just because its real estate doesn't mean it DOESN'T GO DOWN! I don't know why folks act so stupid on this topic. Real estate cycles generally happen every 8 to 12 years... everyone seems to forget the down cycle when things are going up.
If you can't afford the DC market, move elsewhere. There are no shortage of jobs, in spite of what the newspapers may be telling you. Do some investigations and you'll find most markets you can buy a nice 3 bedroom house for 100 to 150k tops! And many many markets for less than that. Sure you might have to take a pay cut when you move, but if your housing costs alone are 50% to 60% less, that allows for a lot less dollars coming in to maintain or even increase your standard of living.
Think with your head, not with emotions. If you are working and want the house and home.. find a place where you can realistically afford it, and get out of irrational markets.. let some other sap leverage his life away for an 800 sq ft matchstick house.
I have houses that my total payments, Principal Interest, Taxes and Insurance are $300 a month on a 15 year term! Yes they aren't in gated communities, but you know what? THey are in safe neighborhoods... and any buyer out there could get the same houses to start out.. Live there for a while, save up some money, move up to a bigger house and then hold it for a rental and make $500 a month renting it out... pay off the mortgage with the rents and build WEALTH!
If you can't afford a single family where you are, look at multi's and rent out the other units to subsidize the mortgage payments! Why everyone thinks they have a right to a 2500 sq ft new construction mcmansion on wysterial lane or a 1500 sq ft apartment in a complex with a pool and a work out room and to be able to have that 3 days out of college is beyond me!