The main problem is the cost of homes are too high and too much of a percentage of a family's income. The prices of homes must come down. Has anyone questioned that these bad home loans out there are partially due to the cost of the home? I work with a homebuilder in Northern Virginia. The land costs are what are driving the cost of homes up so much. This homebuilder was paying $450,000 for each lot that they were building townhouses in Ashburn, Virginia. This lot price drives the finished cost of a 3 bedroom townhouse to $600,000 or more. That's a monthly $3,600 mortgage payment at 6% over 30 years. This doesn't include taxes and insurance, so now we are up to $4,000 a month for a 3 bedroom townhouse in Northern Virginia!