if that doesn;t keep people paying their mortgages, then nothing will. I also buy into the kids and schools logic, because that is the most important issue for most families chosing a neighborhood.

A $100k mortgage @ 5% interest only, equals $416 monthly interest, no principal, plus taxes, and insurance. Don;t forget the interest deduction if 'homeowner' is holding a job. $932 interest for a $200k mortgage seems like a bargain compared to renting in all of the areas I know about. What's not to like?

Bottom line, people have to live somewhere, and perhaps the rent comparison is what is needed to short up home prices.