"Better a teacher in Omaha than an Upper East Side internist."
William Bernstein at Efficient Frontier thinks there's no housing bubble. It's just that places like California and Boston are attracting disproportionate numbers of high earners.
Doesn't make it any more fun to look at prices though.
Here's a pretty grumpy renter's eye view of the housing boom. I think it unwittingly reinforces the idea that you've gotta buy no matter what the market is.