If we analyze the data from The Real Housing Index, we have to conclude there was no housing bubble in the USA during the last decade. The most stressing data for families happened in 2006. In 2006, a median-income family was able to buy a median-price house devoting 21.2% of its future (30 years) income. A median-income family was able to pay back a benchmark 30-year mortgage loan, devoting 17% of its income. 69% of the families would have been able to buy a median-price house making a 20% down payment and devoting 25% of its income. I would not consider these figures "a housing bubble".

Comparing 2000 figures with those of 2006 we observe almost no difference. The constant share of income to buy a house was 21.2% in 2006 vs. 20.3% in 2000. The real loan payment was 17% in 2006 vs. 16.3% in 2000. 69% of families were able to buy a median-price house in 2006 vs. 71% in 2000. According to the index estimations, prices jumped 55% between 2000 and 2006, but the increase of nominal median income and the fall of real interest rates from 6.22% to 3.87% can explain the increase of house prices.

Comparing 2000 figures with those of 2006 we observe almost no difference. The constant share of income to buy a house was 21.2% in 2006 vs. 20.3% in 2000. The real loan payment was 17% in 2006 vs. 16.3% in 2000. 69% of families were able to buy a median-price house in 2006 vs. 71% in 2000. According to the index estimations, prices jumped 55% between 2000 and 2006, but the increase of nominal median income and the fall of real interest rates from 6.22% to 3.87% can explain the increase of house prices.