[quote]The Demographia International Housing Affordability Survey uses the “Median Multiple” (median house price divided by median household income) to assess housing affordability.[/quote]
Yesterday I was bored enough to look up numbers for my old home town.
Median household income: no hard data. Average per capita income $3000..$3500/year. Median household income is probably 8..9K/year.
Median property price according to their city-wide MLS: $37,500
Median multiple is 4..4.5 – “Seriously Unaffordable” but well below San Diego’s 5.9.
An awfully affordable place compared to San Diego, right?
Just a few problems. Food, clothes, electronics cost about as much as here. It’s not unheard of for a family to spend 50% of income on food. A “median property” is a 500 square foot apartment. Typical mortgage interest rates are in the double digits.
