Here. Comments here. Then there is this guy who needs to google on "gross rent multiplier" to burst his bubble about the ratio between rent and value (here and here)

Well the bubble can't burst here in Oregon because our State Treasurer is on a borrowing rampage to fund home purchases. The low-income home lending limit jumped from roughly $130,000 to $190,000.

This would be my comment to the EconBlog post --

Goggle on "gross rent multiplier" then adjust your assumption on the ratio between rent and value.

Assumptions are no less important here than in the pension arena -- which read to me like they are from some planet far, far away.

In inner NE Portland the frenzy of speculation has gotten ridiculous. But we have silly folks on the news and public TV that continue to say invest in homes – thus the frenzy continues. The local government likes the increased property tax base and is borrowing as much as it can.

The investors who bought in the wake of the S&L cleanup have done already sold to owner-occupants. The successful conservative speculators are on the sidelines waiting for a better opportunity to emerge. A home that sells today for $140,000 and that was bought for $40,000 in the early 1990’s is no longer a bargain.

[Curious site on economics]