Price-to-income-ratio 1986-2008

Damn that Clinton :rofl:

I googled housing ratios & this one came up..there are many interesting graphs at this site.. ...just wanted to share:)

http://emsnews.wordpress.com/2009/06/23/free-trade-debate-never-ceases-to-amuse-me/

I am buy a house that sold in 2005 for over $150K more than I am paying now. Just about every house on the block was built and sold in 2005 and the owners are all upside down.

and health insurance ate up more than any raise would have given workers who actually got one.

While housing prices have fallen dramatically in the highest bubble/scam areas like California, Las Vegas, Phoenix, and Florida, they've remained a bit more stable elsewhere, easily still in the "WTF?" category.

Whether or not to buy property still depends on the local market and what rents are and are likely to do over the next few years, as well as the stability of one's job. It's just not as good a deal as it was in the 90s.

if prices are depressed and rents are starting to go up.

The trick is knowing your local market very, very well and viewing property as a roof over your head and not a long term investment. If it's also a hedge against rising rents, it's still a good deal.

Price to income isn't a great stat because it ignores interest rates. My home cost well over double what my parents home cost them in 1980, but my mortgage payment is lower... because interest rates are well below half of the then-current rates.

The graph implies that there have only been a couple "affordable" market years since 1986? And then only by one of three measures?

The data itself looks wrong. There's simply no way that the average home in 2006 was selling for 8-10 times the occupants income.

My guess is that the graph represents median home price divded by median income (not the income of the buyers) for a specific (and somewhat unusual) market.

On edit - and the title says that it covers from 1968 when it looks more like 1986.

On further review though, it appears that my assumption was correct. The blog you got this from repurposed something from am Irvine, CA blog - but spoke of it as a national data set.

We all know inherently: Things are WORSE for families than they were 10, 20, 30 years ago ...

How are they worse ? ....

Show me ....

This is one of those tables that mean something .... THANKS !


If the richest among us would pay decent wages - There would be no need for government 'stimulus' ...

Low pay is the problem ....

It's from Fannie-Freddie, & not sure if it's cost to build or buy..

http://chrisrecord.com/2010-the-rise-of-the-sophisticated-real-estate-investor/