On August 28, I addressed the question “How Big is the Housing Bubble”. It is the most accurate measure because median and average prices do not factor amenities, the number of rooms, or quality of construction. For at least 12 years, Case-Shiller, rent, average hourly earnings, and the CPI all rose together. They are 44.5 percent above hourly income. In May of 2006, home prices were 55.5 percent above the CPI index and 52.9 percent above hourly income.

Source: Wall Street Journal September 05, 2023 13:25 UTC