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The Median multiple or Median house price to income ratio is a housing indicator used to indicate the affordability of housing in any given
The Median multiple or Median house price to income ratio is a housing indicator used to indicate the affordability of housing in any given community
A community is a social unit (a group of people) with a shared socially-significant characteristic, such as place, set of norms, culture, religion, values, customs, or identity. Communities may share a sense of place situated in a given g ...
. The Median house price to income ratio was the primary indicator H1 of the 1991 World Bank/UNCHS Housing Indicator system. It was subsequently used as a measure of affordability by the UN Commission for Sustainable Development, the National Association of Realtors
The National Association of Realtors (NAR) is an American trade association for those who work in the real estate industry. it had over 1.5 million members, making it the largest trade association in the United States including NAR's institute ...
, State of the Environment 2003 Tasmania, and the Mortgage Guide UK.
The indicator has been popularised by Demographia International, and was called the 'Median multiple' from their second comparative international survey in 2006.
The median multiple is the ratio of the median house price by the median gross (before tax) annual household income
Household income is a measure of income received by the household sector. It includes every form of cash income, e.g., salaries and wages, retirement income, investment income and cash transfers from the government. It may include near-cash gover ...
. This measure has historically hovered around a value of 3 or less, but in recent years has risen dramatically, especially in markets with public policy constraints on land and development
Development or developing may refer to:
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* Development hell, when a proje ...
.
Housing Affordability Rating
The 2024 Demographia International Housing Affordability report uses the following affordability categories based on the median multiple for a given market:See also
* Real-estate bubble#Housing affordability measures *Affordable housing
Affordable housing is housing which is deemed affordable to those with a household income at or below the median, as rated by the national government or a local government by a recognized housing affordability index. Most of the literature on ...
* Inclusionary zoning
Inclusionary zoning (IZ) is municipal and county planning ordinances that require or provide incentives when a given percentage of units in a new housing development be affordable by people with low to moderate incomes. Such housing is known as ...
* Land-use planning
Land use planning or ''Land-use regulation'' is the process of regulating the use of land by a central authority. Usually, this is done to promote more desirable social and environmental outcomes as well as a more efficient use of resources. ...
* Land titling
* Real estate
* Demographia
Wendell Cox is an American urban policy analyst and proponent of the Automotive city, use of the private car over rail projects. He is the principal and sole owner of Wendell Cox Consultancy/Demographia, based in the St. Louis metropolitan region ...
References
{{Reflist Affordable housing