Which housing markets are ready to pop?
Skyrocketing prices are just one facet of the boom; in many places, paychecks are keeping up. But in many, the gap is widening.
By Forbes.com
Housing prices have risen so far and so fast, who can afford to buy anymore? Plenty of people. Of course, those people don't live in New York. Or San Francisco. Or Miami. As everyone knows (or should know by now), home prices have increased around the country over the last few years. In some places, they have shot up like wayward bottle rockets--and many people expect them to eventually come dropping down. But prices alone can't tell the whole story. To get a better picture of which cities are likely to be vulnerable to a real estate decline, with the help of Economy.com, we compared incomes to home prices, factoring in interest rates.
A boom -- but only in pockets
We were surprised at the results: While it has become much more difficult to buy the median house with the median income in many cities, in others it has actually become easier, pointing to a boom taking place in pockets, rather than the nation as a whole.
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