median multiple

{{Short description|Housing indicator measure of affordability}}

File:Housing prices to personal income ratios.webp to personal income (per capita) ratios by metro area

{{legend-line|#00AB8E solid 3px|Los Angeles}}

{{legend-line|#EE220C solid 3px|San Jose}}

{{legend-line|#1DB100 solid 3px|Denver}}

{{legend-line|#FFD932 solid 3px|New York}}

{{legend-line|#00A2FF solid 3px|Seattle}}

{{legend-line|#970E53 solid 3px|Boston}}

{{legend|#929292|United States average|outline=#5E5E5E}}

{{legend-line|#FF42A1 solid 3px|Dallas}}

{{legend-line|#B51700 solid 3px|Chicago}}

{{legend-line|#73FDEA solid 3px|Detroit}}

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[[File:House price to income ratio.webp|thumb|300px|House price to income ratio

{{legend-line|#FFD932 solid 3px|Median house price (left)}}

{{legend-line|#00A2FF solid 3px|House price to income ratio (right)}}

{{legend-line|#61D836 solid 3px|Median household income (left)}}

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The Median multiple or Median house price to income ratio is a housing indicator used to indicate the affordability of housing in any given community.{{Cite web |url=http://www.slawinski.ca/blog/?p=53 |title=Real Estate Bubbles and the "Median Multiple Index" |website=Ted's Blog |access-date=2016-02-13 |language=en-US}}{{dead link |date=January 2018 |bot=InternetArchiveBot |fix-attempted=yes}} The Median house price to income ratio was the primary indicator H1 of the 1991 World Bank/UNCHS Housing Indicator system.{{Cite web |url=http://siteresources.worldbank.org/INTURBANDEVELOPMENT/Resources/336387-1169578899171/rd-hs7.htm |title=The Housing Indicators Program |date= |website= |publisher=World Bank |access-date=13 February 2016}}{{Cite book |last=Angel |first=Shlomo |url=https://books.google.com/books?id=nq_JqHcR12AC |date=2000-10-20 |title=Housing Policy Matters: A Global Analysis |publisher=Oxford University Press, USA |isbn=9780195350326 |language=en}} It was subsequently used as a measure of affordability by the UN Commission for Sustainable Development, the National Association of Realtors, State of the Environment 2003 Tasmania, and the Mortgage Guide UK.{{Cite web |url=https://www.mortgageguideuk.co.uk/ratio-of-house-prices-to-income/ |title=Ratio of House Prices to Income |date=2017-10-09 |website=UK's Mortgage Guide |access-date=2022-05-09 |language=en-GB}}

The indicator has been popularised by Demographia International, and was called the 'Median multiple' from their second comparative international survey in 2006.{{Cite web |url=https://www.demographia.com/dhi2006.pdf |title=2nd Annual Demographia International Housing Affordability Survey: 2006 |date=2006 |website= |publisher=Demographia |access-date=9 May 2022}}

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 public policy constraints on land and development.{{Cite web |url=https://www.demographia.com/dhi2014.pdf |title=10th Annual Demographia International Housing Affordability Survey: 2014 |date= 2014 |website= |publisher=Demographia |access-date=13 February 2016}}