Wildstyle..your assertion that housing prices are, or rather must, return to 3x annual salaries is nonsense that does not apply to NYC, but likely applies everywhere else. Since when did NYC market forces go by such a simplistic valuation? If we were to go by your calculations, since the average HH income in NYC is about $42,000, then housing in NYC, in general, should be no higher than $124,000 (3x salary). Are you kidding? The median HH income is $75,000, and 3x that is $225,000. What world are you living in?
That isn't reality in NYC, and going forward there is no reason to believe NYC valuations are going to 3x salary.