We’re back near the number that preceded the last housing crash

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There’s only been three home-price bubbles in U.S. history over the last 70 years.

Today, with a Home Price/Income Ratio of 4.33x

Back in 2006, when it hit 4.45x.

And post WW2, when it hit 5.00x.

In the previous two cases, the bubble and lack of affordability didn’t last long.

After 2006, prices crashed shortly thereafter, restoring the Home Price/Income to normal levels (below 3.5x).

Meanwhile, after WW2, home prices stopped growing for a decade, while incomes surged 5-10% per year. Pushing the Value/Income Ratio below 3.0x, to its most affordable level ever.

Indicating that there are two sides to the affordability coin: prices, and incomes.

Check Value/Income for your ZIP on Reventure Premium now: https://reventure.app/map?geo=county&datapoint=home_value_to_earnings_ratio

The scary part isn’t just that we’re near 2006. It’s that housing has basically two ways out: prices come down, or incomes catch up. The second one happened after WWII, but I wouldn’t count on incomes suddenly growing 5 to 10% a year again.

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