Are housing prices bubbling again? Maybe in Phoenix, but surely not in Detroit or Chicago. In any event, if private capital wants to buy up foreclosed single-family homes and convert them to rentals, why shouldn't they? Bit of a bandwagon, yes, but not much there in the way of collective liability. Rental stock is needed, the homes typically need a fair bit of work, and getting the work done puts people to work. Hard to see it as a terrible thing.
Speaking of a "nosedive" in median wages is a bit exaggerated. Inflation-adjusted median wages have held n a fairly narrow band between $50-55k since the early 90s, and the push toward the higher end of that bad from 2005-2008 was arguably driven by unsustainable bubble conditions, just like the similar push from 1998-2000. Demographics play a role here as well: income peaks at around age 50, a point the peak of the baby boom passed in 2007. I expect median incomes will decline noticeably as the boom moves past that peak and the leading edge of the boom starts retiring.
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