Using Income Changes to Forecast Home Prices by County

We use the strong association between income growth and home price appreciation to identify counties that are under and overvalued.

We use the strong association between income growth and home price appreciation to identify counties that are under and overvalued.

Our prior work at Home Economics has identified income growth as one of the most important determinants of home prices((see 'Why is Housing so Expensive, here)). We have used this finding to argue, for example, that the ‘Hou…