Quarterly house price to income ratio in the U.S. 2012-2022
The house price ratio in the United States fluctuated between 2012 and 2022. The ratio measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. In the U.S., the index score in the first quarter of 2022 amounted to 138.3, which means that house price growth has outpaced income growth by over 38 percent percent since 2015.
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.
