Newbie question alert, Madison Area

[Michelle Speleos]

Hello, My partner and I are launching a new business.  We have set up our website and social networks, have attended the local REIA meetings, and are about to launch our first mailing campaign. We are excited and look forward to building professional relationships on Bigger Pockets. Stay tuned to follow our progress as we grow.  Now for our question.......

We were wondering how the recent housing inflation in Madison will effect the Real Estate market?  With pay rates low and rentals high will this push people to buy?  An example would be to have a 1200 dollar mortgage verses a 1600-1900 dollar rent. Makes absolutely no sense but it is happening! I was under the impression that banks were pushing higher standards for mortgage approvals, where will the average pay worker go/do?  Just a thought and was wondering the the Bigger Pockets community thinks about it.