[quote=Rich Toscano][quote=no_such_reality]It does apply. 5X with around 4% loan equates out to a front end DTI of 40% on a $317 loan. So technically with no debt basically you’re tapped out to $317k plus down payment
Low down payment adds PMI.[/quote]
It doesn’t look like SD homes have EVER sold for 5x (median home vs. median hh income), even at their cheapest.
How can you say this rule of thumb applies in SD, when it’s never actually happened that way? I guess you can argue that it SHOULD apply, but that’s a whole different point from the one I was trying to make.[/quote]
I read it as a multiplier of affordability not a multiplier of what median should be. I.e. At current rates a person can by roughly 5x their in one. Previously at different t time depending on rates they said 3x or 4x
The OP said what people could afford is 5x. The next argue that median a have never been 5x and I pointed out that 5x still caps what a person can buy (with a loan). ( actually that’s all messed up several people between there). It was you saying it’s more and I agree it is. But that doesn’t change the the question of what can a income by and when could a median income buy a new SFR here
