No. of Recommendations: 5
<<<<For instance, Bay Area home buyers with good credit ratings can qualify for loans that will require them to devote 40 to 50 percent of their pretax income to housing and other debt payments. Traditionally, housing payments -- including principal, interest, property taxes and insurance -- could not exceed 28 percent of gross, meaning pretax, income. >>

I think spending this much income on real estate is unsustainable.

Well, for the past thirty years or so, home prices have been inflated and made affordable by the impact of two income families.

That pattern may have played itself out. But it does point the way towards a long term solution to this affordability problem ----

Seattle Pioneer

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