[quote=sdduuuude]While it seems we are close to historical norms in price-to-rent and price-to-income ratios, I have some doubts that this tells the right story.

Does the reported average or median income take into consideration all the people making $0? i.e.
if 90 people are making $50K and 10 are making $0, do they report an average of $45K or $50K. Do they average in the “0” values or do they just take the average salary of the people who are working? Hmmmm.

Secondly, are we really at historical norms with unemployment as high as it is ? I mean – we may be at an average price/income ratio, but these are not average times. The last time unemployment was this high, what was the price/income ratio or price/rent ratio ?

Would be nice to see a scatter-plot of local unemployment vs. price/rent ratio to see if we are in the ballpark.

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Rich’s curves are based on per capita income, so Yes the zero incomes are averaged in, bringing the average down.