Big Picture 2011: Price to Income Ratio

Okay, let’s have a look at how local home prices compare to local incomes. This is basically the same thing we’re looking at when we talk about affordability, but with interest rates taken completely out of the picture. First, let’s check out the ratio between home prices and King County median household income data from […]

Low Rates Make WA Real Estate Appear Undervalued

I was going through some older posts recently, looking for some ideas of data sets to update, when I came across this November 2007 post written by Deejayoh: Washington Real Estate: 40% overvalued? Here’s a brief excerpt from his post: I ran across this very interesting analysis of the California real estate market by Goldman […]

Seattle Got Richer Just Before the Housing Bubble

In the comments on yesterday’s post, Jonness took me to task for my claim that the incomes of likely homebuyers saw a notable boost between 1996 and 2001. Ask yourself why house prices have fallen less percentage-wise in Thurston County than King County? Google doesn’t have a campus in Olympia, and very few people down […]

Seattle Home Prices Back in Line with Per Capita Incomes

There has been a lot of talk the last week or so in the comments about home prices and incomes. I’ve linked up my September post on the topic a few times, but I thought it would be nice to run an update since it’s been half a year. Here’s my conclusion from that post: […]

Top 30 Cities: Price to Rent & Price to Income Ratios

As something of a follow-up to September’s Big Picture Week, I thought I would post another update to the multi-city price metrics table. This time I figured I would expand the list to the top 30 so DC, Vegas, and Portland wouldn’t feel left out. Data is current as of August 2010. Previous posts covered […]

Big Picture Week: Price to Income Ratio

Like the price to rent ratio, it’s been over a year since we visited the subject of Seattle’s home price to income ratio, so let’s take another look. Here’s how the ratio stacks up when you use King County median household income data from the OFM: Not too different from what we saw in yesterday’s […]

Charting How Much Home the Median Income can Afford

A few days ago on my sarcastic interest rates post, Dave0 asked: I wonder what the chart would look like if you graphed out, from 2000 to present, the price someone could afford to buy with the given interest rate at the time (from the graph above), with payments equal to 28% of the median […]