[lbo-talk] real estate bubble?

[Devine, James]

>In California, Shiller and Case found, home prices rose 7.7 percent 
annually from 1995 through the third quarter of 2002 while personal 
income gained 4.5 percent per year. In Massachusetts, home prices 
were up 9.1 percent during that period while income increased only 
5.1 percent.<

shouldn't they compare home prices to the incomes of those who can afford houses, i.e., more up-scale folks? in addition to the growth of per capita and total personal income, there's been a shift to the rich, no?

Jim D.