I guess the real question is whether we can expect 2001 prices at 2011 wages. I would bet not. With inflation and devalued dollar, I would not be surprised if median household income in 2011 is double that from 1995. That’s an increase of about 4.5% per year.
Remember you need to subtract:
A. Real-estate related job losses.
B. Local economy job losses due to the above as well as the disappearance of the “house as ATM” effect.
Given that something like 25% of our employment is in the RE sector, I can see at least a 30-40% decline in the median income until we hit bottom.
