Optimisto

Housing Boom and Bust More About Productivity than Bubbles

median income did not grow...aggregate income grew. There were more people who had enough income to purchase a home, even if they were lower earners. Consistant with median income stagnation but housing market expansion.


On Jul 13 03:16 PM ron_paulite wrote:

> "he notes that productivity drives long-term income growth and that
> incomes determine how much families can pay for homes."
>
> nice try. there was little or no income growth since 2000 and yet
> property prices keep going up. in fact, the 2000 to 2007 are the
> years property prices went up like crazy.
>
> sure productivity growth plays a part in bubble building ... that's
> common sense. but low interest rates play an even more important
> role.