Housing prices are high because the stock market is high and interest rates are rock bottom. The higher the stock market goes and the lower interest rates go, the more house prices are juiced. Anyone without exposure to the stock market will never be able to afford a house, ever. That's where the income inequality is really stark.
More institutions are buying homes and competing with the homeowners, because bonds are very-low yield and the stock market overpriced in terms of P/E.
