There is a graph in this article that shows the history of real estate price to income fluctuations in San Diego for the last 29 years:

It pictures the hard landing scenario for San Diego housing markets, where prices will have to fall from 25% to 35% to get back to historic range. I think I agree.

But the interesting point I want to stress here is the minimal rate of wage inflation that Feds will have to allow in order to prevent the housing market from a total bloodbath. The author is assessing that the nominal wages will have to grow at 8% yearly rate in order to make the house prices to drop by "only" 25%. Or, I should add, we just should exclude San Diego from the big picture of U.S. economy, as a city that will be in ruins 6 years from now.

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