The only sure way to turn the housing industry around is to make more people, and make them willing and able to buy real estate. Assuming the continuation of the present sentiment against importing home buyers, it will take about one generation of passionate procreators followed by twenty or so years of nurturing and a touch of financial prosperity.
In the meantime, we continue to ignore the half generation of would-be move up buyers, many of whom have the ability to make substantially larger monthly payments. Unfortunately many of them are stuck in too small starter homes with negative equity, the result of falling prices. Simple solution -- let them port the debt to another home.
While we're growing more home buyers, it would be prudent to focus whatever attention our half-blind government chooses to use on potential buyers who have the funds to service larger debt on a larger home. Maximum effort exerted on creating more renters is counter-productive. We're so busy burying the economically dead that we have no resources left to help the folks with a chance of improving the industry.
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