bostonbubble.com

[balor123]

NAHB/HOI Index is out for 2008. Boston is #168/222 on the list. I think it feels more expensive, though, because the median income in Boston is very high at $80k! I would like to see an index adjusted for how many people work in a household. I suspect that Boston would drop a lot if you included the median income of workers rather than households. Then consider that Boston housing stock is different than other cities. We have loads of 1 and 2 bedroom places and some 3 bedrooms while 4 bedrooms is scarce. I would like to see a family affordability index, which tosses out the housing for students. Last, they should include Greater Boston. The index tosses out all of the family friendly neighborhoods while other cities they are included. The family friendly neighborhoods are much more expensive. I think if you made these adjustments you would see some cities move much higher and others lower (like Boston). Especially ignoring number of workers is a problem because having a 2-income family means that you have to pay more for daycare, food, housekeepers, etc.

[Booba]

I sorry, but "the median income in Boston is very high at $80k!" statement is incorrect It is much lower!
I don't know where did you find that number, but Federal Reserve has different numbers!
http://www.bos.frb.org/economic/neppc/memos/2008/owens012808.pdf
It says that median household income in Greater Boston DECLINED by 3.9% from 1999 trough 2006.
What about reals estate prices dutimg this period? They jumped by 3-5 times!
Therefore, whatever those "expertes" say the prices PROGRAMMED to fall more dramatically!
Unless Mr. Obama, Mr. Frank and others will create yet another bubble by bailing out shmucks, pushing banks to loosen credit rules and giving buyers more tax candys...
God forbid is their plan will work! Our economy may not stand the second housing bubble!