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Uh oh. After explaining the difference between housing in the middle of the country ("Flatland," where sprawl keeps prices in check) and the coasts ("Zoned Zone," where space constraints and land-use restrictions can inspire inflated prices), Paul Krugman says it's all over:

Now we're starting to hear a hissing sound, as the air begins to leak out of the bubble. And everyone - not just those who own Zoned Zone real estate - should be worried.
And here we thought that sound was just our servers. (At the risk of over-extending our Learning Annex economics education, may we offer another reason ? beyond the hopes of illusory capital gains ? that homebuyers may continue to pay to play in Zoned Zones: they ain't moving to Flatland! Paging David Brooks!)
· That Hissing Sound [NY Times]