Real estate market in many areas has gone crazy as well - rising interest rates are going to have an impact but my guess is that a demographic strong demand will keep prices steady unlike the speculative crash of a decade and a half ago.
As rental housing may become too expensive, we are considering buying either farmland or timberland as assets. Anyone here have experience with that?
I wouldn't be so sure about prices. There is a scenario where there could be a housing bust- remember what happened in 2008 was driven by sub-prime loans. With prices sky-high, ARMs are back again, and we're also in the midst of a giant student debt bubble, which already has 3x the rate of defaults that mortgages had when things blew up during the Big Short era. More than enough capital tied up there to spill over into the rest of the economy when that bubble pops.
Interest rates are going up... not saying I know what's gonna happen, but I wouldn't game my investments expecting R.E. prices to stay where they are.
+1 on your idea of timber or farm land though. I'd love to get my hands on some. And build a cabin off the grid for weekend (or "oh shit") getaways.