Housing Bubble

So, some say that there is this 'housing bubble' that will eventually burst. Others say that's just not true. Well, something's got to give. Housing in the District has double digit appreciation inspite of a flagging economy. Why does housing have to cost soo much out here? Why is it that some townhouse in the NE in a crack neighborhood still costs more than my parents' house in Kansas City that sits on 3/4 of an acre and the neighborhood is much better. Yes, I know, supply and demand, the fact that people earn more out here than they do there and so on.....but still....housing is overvalued here, any way that you look at it. I had a German roommate who lived in the group house. She moved out from her previous house, while it was in the NW, a little northwest of Georgetown, it wasn't that nice of a house and no where near a Metro station. Her room was about 7' x 6' and had no furniture. She was paying $550 a month to live there. She moved to my place while it isn't in DC, is about a mile from the DC border, is much larger than her place and paid $50 less for a room that was easily double the size of her previous room and was furnished.
I encourage everyone to stop paying insane amounts for housing that isn't, quite frankly, worth it. Why pay soo much for the 'prestige' of living in the NW or any other supposedly swank area? All you're going to pay more for is the chance to live somewhere cramped and that might very well be hovel-esque. This is my socialist tendencies showing, but if everyone banded together and refused to pay insane amounts, then well, landlords would be forced to stop charging them. I should have posted this on May 1st, proletariat unite against the bourgeois house/apartment owners!
I either have to:
1. Hope that everyone does unite and housing costs go down.
2. Wait for that housing bubble to burst.
3. Suck it up and pay more for housing.
Which option do you think I'll end up doing? Anyone want to donate to the I-need-good-housing fund?