When income and housing prices diverge

income and housing prices diverge

The black arrows in 1979 and 1989 indicate real estate bubbles. But they were just little bitty things compared to the whopping divergence between income and housing prices we have now.

So, onto the primary question, “what would be required to bring house prices and income gains back in line?”
The answer to that is either:

1) An income gain of 51%
2) Or a decline in house prices of 34%