Median multiple

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The median multiple is used to indicate the affordability of housing in any given community.[1] The median multiple is widely used for evaluating urban markets, and has been recommended by the World Bank.[2][3]

The median multiple is the ratio of the median house price by the median gross (before tax) annual household income. This measure has historically hovered around a value of 3 or less, but in recent years has risen dramatically, especially in markets with severe public policy constraints on land and development.[4]

Table[]

The International Housing Affordability Survey uses the following table to determine affordability ratings:[5]

Rating Median multiple
Severely unaffordable 5.1 and over
Seriously unaffordable 4.1 to 5.0
Moderately unaffordable 3.1 to 4.0
Affordable 3.0 and under

See also[]

References[]

  1. ^ "Real Estate Bubbles and the "Median Multiple Index"". Ted's Blog. Retrieved 2016-02-13.[permanent dead link]
  2. ^ "The Housing Indicators Program". World Bank. Retrieved 13 February 2016.
  3. ^ Angel, Shlomo (2000-10-20). Housing Policy Matters: A Global Analysis. Oxford University Press, USA. ISBN 9780195350326.
  4. ^ "10th Annual Demographia International Housing Affordability Survey: 2014" (PDF). Retrieved 13 February 2016.
  5. ^ "12th Annual Demographia International Housing Affordability Survey: 2016" (PDF). Retrieved 13 February 2016.
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