America’s housing affordability crisis is getting worse


The pace of home price appreciation has begun to slow, according to data released Thursday from the online real estate marketplace Trulia.

Trulia uses asking prices and rents to estimate housing prices as they are right now, making it a better real-time gauge than other measures like the Case-Shiller Index, which is far more backwards looking. Trulia’s latest numbers have home prices increasing 8.1% year-over-year in June, a couple points lower than the most recent Case-Shiller data.

But even though home price appreciation has begun to slow, the U.S. is quickly moving from a point where it should be cheering home price appreciation to where it’s a sign that homes are getting too expensive. After all, home values have basically recovered to their pre-bubble levels. According to Standard & Poor’s Chief Economist Beth Ann Bovino, home prices have returned to their long-term average of 260% of average household income. This is far below the pre-bubble…

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