BobS
gdcox makes a valid point by challenging the income/house price ratio. Since the earlier period had artificially high interest rates, house PAYMENTS were unnaturally high. We all remember that Volcker had to use 15%+ interest rates as a battering ram to wipe out inflation and inflationary psychology. Housing was the collateral damage.
In contrast, the bubble was stimulated by unduly low interest rates for several years under Greenspan.
A better ratio might be income/house payments.
