[purplezooey]

It's no bubble now because we don't build nearly enough in these areas. We need some kind of big federal or state project where lots of people get bought out to leave, or moved via eminent domain, and higher density built.

[chadcmulligan]

I'm in brisbane, australia, and this seems to be the case here as well. There has been huge increases in property values and rental returns. Recently though they're has been a high rise building boom and sure enough rental prices seem to be dropping and there's an over supply. There is a general property slow down occurring to, though how far its going to go no one knows. The supply side of the demand / supply seems to be increasing.

Another theory that seems to be going around recently is its the availability of credit that causes these bubbles, which on the face of it seems to make sense. If credit isn't available then prices wont increase, if easy cheap credit is available then people will leverage up, which pushes up house prices and the circle continues.