The factor of 9 is an average for the entire city, and includes move-up buyers with tons of equity, and people who’ve lived in a house a long time and accumulated equity. So we can’t use the 9 multiple for figuring out how much people will borrow for a mortgage. That figure is much lower.
The loan amount used to be 3-3.5 x your income. By that analysis, the $40K income would afford a $120-$150K house. That would be the viable price of a starter house in San Diego.
Rich’s charts use per capita income, not household income. If household income is $64K in SD, then per capita income is ?
