both economies had extraordinarily large real estate bubbles.

Massive real estate bubble (check) -Central bank bailing out banks (check) -Bailed out banks keep bad real estate loans on their books at inflated values (check) -Government taking on higher and higher levels of debt relative to GDP (check) -Employment situation stabilizes with less secure labor force (check) -Home prices remain stagnant (check)

the United States had never witnessed a year over year drop in nationwide home prices since the Great Depression.

home prices are now back to levels last seen 8 years ago.  The lost decade is now nipping at our heels but what about two lost decades like Japan?

the U.S. has such a large number of part-time workers and many of the new jobs being added are coming in lower paying sectors signifies that our economy is not supportive of the reasons that gave us solid home prices for many decades. 

young Japanese workers, some in their late 20s or early 30s, already resigned that they would never buy a home.

The notion that housing is always a great investment runs counter to what they saw in their lives.  Will they even want to buy as many baby boomers put their larger homes on the market

many of our young households here are now coming out with massive amounts of student loan debt.

Lower incomes, more debt, and less job security.  What this translated to in Japan was stagnant home prices for 20 full years.  We are nearing our 10 year bear market anniversary in real estate so another 10 is not impossible.  What can change this?  Higher median household incomes across the nation but at a time when gas costs $4 a gallon, grocery prices are increasing, college tuition is in a bubble, and the financial system operates with no reform and exploits the bubble of the day, it is hard to see why Americans would be pushing home prices higher.