The Dark Lining of Record-High Home Ownership Rates

Gallant says: "Homeownership has climbed to record levels across America."

Goofus says:

An Associated Press analysis of the new Census data shows that since 1990, homeowners have faced a growing gap between their incomes and the price of their homes.

Nationally, median household income grew by about 60 percent from 1990 to 2006, roughly matching inflation. At the same time, the median home value—the point at which half were more and half were less—more than doubled, to $185,200, according to the analysis.

The widening gap in all but a handful of the nation's 500 largest cities helped make the recent boom in housing prices unsustainable, according to analysts. The rising prices were fueled largely by low interest rates and risky borrowing, rather than increasing incomes.

More here.

Jeff Taylor on subprime stuff here.