There may be pockets at 60%, but not as an overall average. Even in Temecula, areas are hurting, but 80% puts a 500K 2005/2006 house at 100K. At 70% in my area, a 600K house becomes 180K. Median income here depending on source is somewhere between 70K/90K I don’t see it, my friend at 2X income in a deirable area. I don’t see it at 3X income for SD overall. I can barely buy that same house 30 minutes outside of Omaha where my mother in law lives for 180K.
If you just look at things on a cost/sq ft versus what it takes to build that makes no sense. Also makes no sense as a rent multiplier unless you assume rents come way down. A 2,000 sq ft house is going to be at least 250K just to put the thing up. Imputed land value would be zero. A reasonable rent multiplier will still put it well over 300K
