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  • Back in 1970, the typical new home cost just 3.2 times the median income.
  • By 2004, that ratio had breached 5x for the first time, and it has rarely dipped below 5 since the Great Financial Crisis.
  • The 2000-2006 housing boom pushed home prices up faster than incomes, inflating the ratio from 4.3 to 5.4 in just six years.
  • After the 2008 crash, prices corrected, trimming the multiple to 4.5 by 2009.
  • In 2022, the ratio peaked at 5.83—an all-time high.
I recall seeing a figure that showed new homes have been getting smaller recently.
Combined with people moving away from the most expensive metro areas, we should see average prices coming down for a while.
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