Eric Balkan

A Housing Bubble Within a Bubble

I agree with many of the comments above, but want to add something I didn't see mentioned. There's a traditional rule to allocate 25% of your after-tax income to housing. With the increase in housing prices over the past 20 years, that percentage is now 40-50% for many. E.g., most Gen-Xers are priced out of the market. I expect that housing prices are likely to come down significantly, i.e., revert to the mean, to restore some balance.