According to a Seattle Times article of September 12th, since 1990 the gap between consumer incomes and home values has gotten wider and wider. (Did they actually have to conduct research to figure that out?!)
Nationally, the median household income grew 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.
In the Seattle-Bellevue-Everett metro area, incomes grew 71 percent between 1990 and 2006 — from $36,338 to $62,179. But home values soared 173 percent — from $136,200 to $371,800.
Statewide, Washington ranked seventh in the nation for home price increases between 1990 and 2006, with a 187% increase. Incomes at the state level rose just 69% in comparison.
At this rate, with first-time home ownership becoming even more difficult to attain, expect the next generation of “land barons” to be condo owners!