Huge flaw in Housing Heads' minds

Housing Heads continue to argue that, "Many families will not live serenely in an apartment waiting for a bubble burst. Families need houses." This leads to a conclusion that housing prices will always go up.

The fundamental flaw in that assumption is that they forget families can rent a house (with a yard and everything). There are more speculators than ever so there are even more houses to rent than before. Rent is going for a fraction of the actual mortgage+tax.

My original house purchased in mid 2000 had expenses of $1939/mo. In 2005, the buyers have $4001/mo expense. Now in 2006, I am renting a house that overall is almost as good as my old house, but I'm only paying $1300. Even after tax deductions, I'm saving $222/mo. This makes sense because even in 2000, house prices were already at a high index.