Inflation adjusted wages are only going in one direction – down, down, down – our government is on a money printing path that is only going to get worse as more and more entitlement spending comes online (boomer retirement)
The continuing exportation of US jobs will also cause real wages to decline (more US workers looking for fewer available jobs – supply and demand says that employers will have to pay less to get qualified workers)
My point: don’t expect rising income to have an effect on the real estate market – in fact, as wages continue to decline in real terms, more and more people will be forced to double-up in housing (or move back in with the folks) which will reduce the demand for housing and exacerbate the decline in housing prices
