Housing Affordability In Select Markets: London, New York, Tokyo...

From MoneyBeat:
Big Bad Bubbles

By Art Patnaude

New York prices have normalized since 2007 but houses in London, such as these in upmarket Notting Hill, are continuing to disconnect from real incomes.

Homes in global cities like London, Tokyo and New York are expensive.
Yeah. And?

Well, Fitch Ratings in a report Tuesday went beyond looking at how much houses cost, and calculated how affordable they are. That is, how the price of a home compares to how much money people make.
Because at some point, Fitch said, prices can’t keep going up if wages don’t follow. Bubbles pop.

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