Over the past decade, home prices have increased at an annualized rate of nearly 9% per year, while incomes have increased by almost 4% per year. This has resulted in home prices that are now 4.5X more than US median family income. Ten years ago, home prices were just 2.8X income. Such an imbalance could be attributed to 30-year mortgage rates having been significantly below its long-term historical average.
