Unfortunately, the booming economy has had a deleterious effect on the housing situation in many cities. If it becomes clear you'll never find a house you can afford and you aren't happy renting, consider looking at other areas. If moving isn't an option, get friendly with a good real estate agent, someone who knows the area intimately and can spot a bargain before it comes to market. Some agents specialize in distressed properties, everything from repossessions to tumble-downs. The economy won't always be this hot.
Prices do fall.
A lot of government and private agencies are working to increase the stock of affordable housing. Get acquainted with local housing advocates who can keep you up to date on what's happening. Pamela Reeves writes for Scripps Howard News Service.