Are house prices over valued?

Not as bad as in 2008, but historically high relative to renting.  In the long run the prices should be close (Chapter 9).

Housing prices differ by city, so check the affordability vs. the wages in your area, a measure of the "real price" of a house.

QUESTION:  based on the real prices below, do you think these wages and housing prices are in long run equilibrium?

HT:  Calculated Risk