Demand for real estate is a function of effective demand (and that really means jobs). But you should never say demand without also saying supply. It’s the interaction of the two that yields prices.
Denver, for example, has added more than 149,000 new dwelling units (all types including apartments), yet since January 1, 2001, yet the total number of jobs is down 47,700 (February 2001 vs. February 2010). That does not bode well for prices.
For data on your local market regarding residential building permits, click on the Real Estate Center at Texas A&M University.
Current employment data are available at http://data.bls.gov:8080/PDQ/outside.jsp?survey=sm (be certain to compare the same month in the prior year due to seasonality)