The inflation-adjusted income of the median household—smack in the middle of the populace—fell 4.8% between 2000 and 2009, even worse than the 1970s, when median income rose 1.9% despite high unemployment and inflation. Between 2007 and 2009, incomes fell 4.2%.
Also the number of households have decreased, again this should reduce demand for housing.The median household income fell 0.7% to $49,777 in 2009, down 4.2% since 2007, when the recession started, the Census Bureau said.
That has prompted many young adults to move in with family, or put off leaving home in the first place. The number of 25-to-34-year-olds living with their parents rose 8.4% to 5.5 million in 2010 from 2008. Within that age group, 42.8% fell below the poverty threshold—$11,161 for an individual.CNBC is already calling it a double dip in housing. In addition you giant supply of shadow inventory of homes.