"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus
And one of the reasons the housing prices are where they are today is becuase demand was created out of thin air via crazy loans to people that could not really afford them. As with any pyramid scheme, if you got in early you are ok. If later, well, that's why pyramids are bad.
Oh, and the "thin air" from where the buyers came was "renting". I've been renting in the Seattle area for eight years now. While housing prices have skyrocketed, rents have been absolutely flat. I guess there is no shortage of homes.