Quarterly house price to income ratio in the U.S. 2015-2021
During the coronavirus (COVID-19) pandemic, the house price to income ratio in the United States fluctuated greatly, surging from 111 percent in the first quarter of 2020 to 130.5 percent in the final quarter of 2021. This ratio was calculated by dividing nominal house prices by nominal disposable income per head with 2015 chosen as a base year. This means as of the fourth quarter of 2021, house prices in the U.S. have risen about 31 percent higher than income.
Stagnant wages
Average annual real wages steadily rose until 2014 but have since remained stagnant. However, single-family house prices have continued to increase. This disparity has resulted in decreased housing affordability.
Average wages needed to buy home
The share of wages needed to buy a median priced home in the Unites States has been steadily increasing since 2012. This trend is reflected in the house price to income ratio as well. The availability of affordable housing will become more important, if the price to income ratio continues to develop in this way.
Stagnant wages
Average annual real wages steadily rose until 2014 but have since remained stagnant. However, single-family house prices have continued to increase. This disparity has resulted in decreased housing affordability.
Average wages needed to buy home
The share of wages needed to buy a median priced home in the Unites States has been steadily increasing since 2012. This trend is reflected in the house price to income ratio as well. The availability of affordable housing will become more important, if the price to income ratio continues to develop in this way.
