[quote=Rt.66]SD average wages for 2007 was $61k and expected to fall from there.
2.5 times earnings ($61k) equals $152,500.00
Housing prices at 2.5 times earnings is a good historical ratio for bad economic times.
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Not in San Diego it’s not. The historical San Diego household income/price ratio is above 4. In really bad economic times, it’s dropped to 3.5 here. San Diego is a really popular place to live, and we pay for it – just like other really popular cities pay for it. This isn’t Cleveland or Minneapolis (where I’m sure a 2.5x ratio is obtainable in bad economic times).
Pleny of Rich’s charts go back to the 70’s (although he uses per capita income rather than household income), and 2.5x household earnings simply doesn’t happen here.
(bearing in mind that a 61.8K household income is roughly equivalent to 2x per capita income (30K in 2007), the best ratio in the past 30 years was in 1997, at about a 3.75:1 ratio)
