In today’s WSJ article [Whats behind the boom](http://online.wsj.com/public/article_print/SB113226292707000449-T6d8JrmM_UIvrTth0Bab0CCGUwo_20061120.html), the author explores what issues are important to consider in the housing boom.

>Almost everyone agrees that prices can’t keep rising this
> fast much longer. The debate now is whether the boom
>will lead to a soft landing, with gentler price increases, or
> to a long, painful bust, in which prices fall considerably in
> some places before buyers regain confidence.
>
>However the current boom ends, longer-term forces are
>reshaping the housing industry. Here is a look at some of
>them.

* Geographic limitations on available property
* A higher proportion of income now spent on housing
* Housing sizes have increased, but the trend of moving to smaller units in urban areas is gaining
* Lenders have pushed more risky loans
* Housing has fueled consumer spending but has also increased debt
* Foreigners keep buying our debt, keeping mortgage rates low
* Anti-trust pressure on NAR, discount brokers trying to make in-roads
* The bigger home builders got bigger, gaining market share
* Second home and investor properties are gaining in popularity

Some interesting trends on affordability and personal income: