A while back, I was reading some article on how Canada had the highest real estate prices ever and how it was all guaranteed to never stop increasing and how Jesus Christ himself was going to buy a condo in Yaletown. And there was a comment that made me laugh. To paraphrase:
"Stupid Canada. 2nd biggest country in the world and you're jamming yourselves into condos in Vancouver."
Something like that.
So, here we are. A country with 1/100th of the world recognition of the United States and we tell ourselves that real estate keeps going up because everybody wants to live here. Nobody knows who we are.
For hundreds of years, real estate prices have come back to a norm (adjusted for inflation of course). Here's this boingboing post showing where the US is at. We're not different. This makes no sense. Paying $4000 a month for something you can rent for $2000 is not an investment.