Median multiple

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
gollark: I imagine it would produce larger Lua files than CC likes.
gollark: Bad idea #12501285981: "run" Haskell "in" CC by running a Haskell program on some remote server somewhere and having it send commands to an ingame CC computer and receive info back.
gollark: Have you tried using it?
gollark: <:urn:627264769195245578>
gollark: Before it spreads.

See also

References
  1. "Real Estate Bubbles and the "Median Multiple Index"". Ted's Blog. Retrieved 2016-02-13.
  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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