Housing Affordability
Also called: affordability index, price to income ratio, housing crisis
Housing affordability compares house prices or rents to local incomes, most simply as a price-to-income multiple or the share of income spent on housing — with 30% the conventional threshold for cost burden. Affordability depends on three moving parts at once: prices, incomes and interest rates, which is why a period of flat prices and rising rates can worsen affordability sharply.
Formula
Price-to-income ratio = Median house price ÷ Median household income