Housing Problems and Solutions

The trends in how our generation will live is uncertain.  The housing bubble has popped, but it is very difficult to scrape together a down payment for one of these "bargains," not to mention that job security is almost nonexistent. My husband and I are experiencing this problem first-hand, and there really is no easy answer.  Sure, we have the income to save $1000 a month for a down-payment (on top of a rent of $750), but will our jobs be secure enough to take on a 15 or 30 year loan commitment?  The second question is whether the market in the Midwest United States really is at rock-bottom.  It has always been relatively inexpensive to live in the Midwest, but owning a home is still a daunting prospect for your average twenty-something year old.  Interest rates are not at "historic lows," but interest rates are not as important as a low selling price.  I only say this as future taxes are based on house appraisals, in addition to the time it will take you to pay off your ball-and-chain.  Is renting forever a realistic prospect, or is there some middle-way in this whole maelstrom of housing misinformation.