Business & Investment

Median house price and household income

Along Calculated risk of January 27, 2021 12:24: 00 PM

One of the indicators we want to follow is the ratio of home prices to income. Unfortunately, most revenue data was released significantly later, and there is always a question as to which revenue data to use (average gross revenue is distorted by the income of a small number of people).

Also, for key home price indicators like Case-Shiller, there is an index rather than an actual price.

However, it is possible to build a ratio of home price index to some income.

Posted in October of last year House prices relative to the national average wage index.. This is another measure-house prices relative to median household income.

This graph uses the Year-end Case-Shiller Home Price Index. Median Nominal Household Income Until 2019 (from the Census Bureau). Median income in 2020 is estimated to increase by 5%.

Click the graph to see the enlarged image.

This graph shows the ratio of the house price index divided by the median household income up to 2020 (HPI is initially multiplied by 1000).

It uses the National Case-Shiller Index at the end of the year since 1976 (estimated in December 2020).

Home prices appear to be rising, but still well below the level of the housing bubble.

Median house price and household income Median house price and household income

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