How Big is the US Housing Bubble?: Another Look at the Question

Home prices, measured by Case-Shiller, have sharply risen compared to average hourly earnings, rent, and the CPI, indicating a concerning housing bubble. In May 2006, prices were 49.2-52.9% above income, CPI, and rent. Now, they stand 38.0-69.4% higher. Rising rent forced many into home buying, intensifying the issue. Adding property taxes, insurance, and student loans worsens the situation. With mortgage rates above 7.0 percent, a prolonged period of weak housing is anticipated.