realestatefan – I actually have the same question. I’m one of those younger (actually not so young anymore, heading toward 40) buyers. I’ve been looking at all of the houses around for the past few years, since my income rose to what I WOULD have thought was a pretty respectable level… and for the life of me I have not been able to determine how there are so many people that could afford all of those home.
While I do not want to wish current homeowners ill, I am desperately hoping for a large drop in housing cost so I can afford to buy. And with a maxium reasonable” loan of 3X someone’s salary, that comes to $183000 per year to buy the median home in these parts. Ouch! Your $740K example should require a $245K yearly salary.
