[quote=AN]Here are the data for 2010, 2000, and 1990.
2010:
Median income – 62.7k
median housing price = 328k
median housing price/median income = 5.22
2000:
Median income – 47.2k
median housing price = 223k
median housing price/median income = 4.725
1990:
Median income – 35k
median housing price = 188k
median housing price/median income = 5.36
So, we’re worse off than 2000 but better off than 1990. This does not account for interest rate at all.[/quote]
The last RE cycle topped in ~1989/1990, so that ratio would make sense for 1990. Prices in some very desirable areas crashed ~40% during the downturn of the early 90s, at they didn’t have this massive credit bubble to contend with.
To be sure, things are MUCH better today than they were in ~2004-2007, but when you consider the very large risks to our economy, I think things are still priced optimistically.
