bostonbubble.com

[balor123]

Housing Happiness

Animation showing median household income relative to home prices. Sadly, it only lists the nationwide median household income relative to home prices. Having done the analysis for Boston, I think we would see that the change in Boston prices was mostly as the result of rising incomes here. It also shows that the Boston housing market didn't go up much relative to other areas, partly I'm guessing because houses here were already really expensive, and thus didn't have as much to come down. The remaining increase is due to lower interest rates.

To understand where home prices are going, then, we have to understand incomes. We know that the population of the state isn't going up relative to other states but neither is the number of houses. A recent article showed that the number of millionaires dropped significantly in the state, which explains the high inventory of million plus houses. It would be nice if we could see how the income of people in the $500k - $1 million market has changed.