Originally Posted by Cynthetiq

That is what your hope is. I have collegues who thought that as well and seem to be chasing something they may never attain in NYC, SF, LA because the cost of housing is outpacing the pay scales. So some of my friends who make good salaries have 2-3 hour commutes in order to have housing that they can afford.

Also, start looking into the rules of foreclosure purchasing and you'll find that a) most of the best foreclosures never hit the streets and get sold to those inside the market first, b) must be purchased sight unseen, so you cannot even look inside and walk the premises and see structural faults/issues, c) must pay cash up front since most foreclosures don't accept financing.

Lastly, even if prices become "good" keep in mind interest rates fluctuate and also affect how much "house" you can buy.

As far as Grads are concerned, most grads are heavily debt laden in order to get that education. While yes, they can be deferred for some time, they do still have to be paid back and can never be defaulted on. Some people I know have educational debt in excess of $50k. This does not include their credit card debt for their "lifestyle" that they lived in college which could also be an additionaly $20k. All that gets factored in when qualifying for a mortgage, again affecting how much "house" you can buy.