I've noticed a really strange trend that's occurring here in my town. I live in a smallish town in southwestern Utah. Our economy is fairly stable and there are plenty of jobs for people who are willing to work, but unless those people are working two jobs or have a multiple income household, they don't have a lot of disposable income. There are a lot of huge, beautiful homes here, and the real estate industry seems to be booming, but those houses are nearly a million dollars each, and I know they stay on the market for a long, long time. Most houses here are over 200k, and there are a lot for sale, all the time.
I would think the market is saturated, since I don't know anyone who can afford to buy anything right now, but yet, there are still hundreds of homes being built a year here. Along with all of those homes that are being built, there are a bunch of new apartment buildings that go up every year, too. Rent has gone up so much in the 4 years we've lived in this house, that we're afraid to move because we could never get the deal we have now.
I don't know how people manage to live on less money than we have, quite frankly. Troy has a full-time job and a part-time seasonal job, I work with him at that job & subcontract, too, and there are times when we have a hard time getting everything paid, I can't imagine a $1000 mortgage to worry about, too!