[meyer]

The median, not average mind you, family income has been going down in relation to the cost of a home. About a month ago I gave the URL for two tables, one with the median price of a home compared to the median family income, and the ratio of annual median family income to cost of home went from 2.8 in 63 to 3.75 last year, and keep in mind that a far higher percentage of familes are dual income now compared to 63.

To be fair though, a lot of the increase in housing costs has been a result of larger homes, anti-sprawl regulations in many areas, and other regulatory costs due to government. I'm not trying to take away from your point, but just wanting to temper it a bit with some additional information.

[buwaya]

Higher cost of homes - also explained by lower interest rates and easier credit.

[JNB]

For housing, one also has to keep in mind while the house was smaller, the lots were bigger, so it sort of comes out in the wash. As for the anti sprawl regulations, you have a good point, but some areas were more impacted than others in this regaurd. None the less, the median purchasing power has been in decline for about 30 years. Yes, the credit standards being a bit looser has helped blunt this impact of loss of purchasing power and kept the economy going, but this situation can not last forever.