[quote=sdrealtor]The other problem with using median income as a metric is what those with below median income are generally referred to as in many market. They are called renters. In most market, only a bit over 50% of households are homeowners. Logically the higher income folks tend to be the homeowners. While not perfect, it would be more accurate to use the middle of the upper 50% of households (i.e. the 75th percentile to compare to the median price home). The median income should be more logically compared to the entry level home price. I know this is far from perfect but its more accurate then median income vs. median home price IMO.[/quote]
If we can’t include the lower end incomes in calculating “affordable” housing, we also shouldn’t use the highest incomes, as these people might only pay 1-2X income (or less) if they are very high earners.
It sounds perfectly reasonable to me that the median household income should be able to afford the median priced home (or thereabouts) because these people DO live here.
The fact that we’re in an inventory-constrained market is largely due to the govt interference. That’s one of the reasons some of us are so frustrated.
