I went from a $1400 apartment to renting a spare room in someone's house. When less people rent apartments and real estate, the demand and the price will go down. This is already beginning because most people can't afford it.
I know each situation is different and this isn't an option for everyone but if you're barely scraping by and could potentially stay with friends or family for less, consider the other options. If you're able to save any money at all doing this, you will be in a better position when the housing collapse comes.
If the costs are unreasonable, we should demand change by withholding our funds and opting for more cost-effective options. The idea that we're failures if we don't have our own place in our 20s or 30s should be tossed. The market is unreasonable and we vote with our dollar after all.