The Effect of Two income Households on Housing Prices In the book The Two-Income Trap: Why Middle-Class Parents Are Going Broke) by Warren and her daughter, she states the following in chapter 1: 


  If two-income families had saved the second paycheck, they would
  have built a different kind of safety net—the kind that comes from
  having plenty of money in the bank. But families didn't save that
  money. Even as millions of mothers marched into the workforce, savings
  declined, and not, as we will show, because families were frittering
  away their paychecks on toys for themselves or their children. Instead,
  families were swept up in a bidding war, competing furiously
  with one another for their most important possession: a house in a decent
  school district. As confidence in the school system crumbled, the
  bidding war for family housing intensified, and parents soon found
  themselves bidding up the price for other opportunities for their kids,
  such as a slot in a decent preschool or admission to a good college.
  Mom's extra income fit in perfectly, coming at just the right time to
  give each family extra ammunition to compete in the bidding wars --
  and to drive the prices even higher for the things they all wanted.


Could someone provide some references for this? I'd like to see when this happened, and some evidence. And is this what economists call a "bubble"?
Todd Zywicki has tried to directly evaluate this claim. He finds that it housing prices and other costs are much lower than the increase in the tax burden. 


  Thus, taxes increase in the example by \$13,086. By contrast, annual
  mortgage obligations increased by only \$3690 and automobile
  obligations by \$2860 and health insurance \$620. Those increases are
  not trivial, but they are swamped by the increase in tax obligations.
  Too put this in perspective, the increase in tax obligations is over
  three times as large as the increase in the mortgage (the supposed
  driver of the "two income trap") and about double the increase in the
  combined obligations of mortgage and automobile payments. This also
  leaves aside the peculiarity that the 2000s family is paying \$9670 in
  new child care and \$2860 in new automobile expenses supposedly to meet
  a \$3690 increase in mortgage expenses, the supposed driver of the
  model.


Evaluating The Two-Income Trap Hypothesis

Arnold Kling (Taxes and the Two-Income Trap) notes that Zywicki's estimate doesn't include payroll taxes and therefore underestimates the change in tax burden.