I live in the Maryland suburbs of Washington, DC. Real estate in DC is very high and did not suffer as much in the Great Recession, due to the extremely limited supply of available housing. But I don&#x27;t think our problem is foreign investors. Many people who moved into the burbs in the 80s and 90s now want to move back, as DC becomes more desirable. I see young people everywhere, even though it&#x27;s hard for someone just starting out to buy here. But because DC can&#x27;t physically grow as a city, it becomes harder and harder to find places for new housing.<p>Out here in the burbs, it&#x27;s a different story. A development just down the road from me suffered very badly in the downturn, with houses losing as much as 50% of their value. Some of those owners will never be above water on their houses. I&#x27;m very glad I chose <i>not</i> to move from my townhouse into a single family home a decade ago, as prices soared, even though I really wanted a place with a mad scientist basement workroom. And as my friends retire, most are moving to warmer and&#x2F;or cheaper places.