March 25, 2016
This might even be scarier than the years before the last bubble. Why? Take a look at the chart. From 2002 to 2008 housing prices and incomes went up together (but of course home values were already on an upward trajectory). The bubble hit and both home values and incomes went down. All of this makes sense. In 2012 housing prices and incomes went up. But that jump in income only lasted a brief period. Now, you have home prices surging 34 percent yet incomes are stagnant. That is a big problem.