Median multiple

{{Short description|Housing indicator measure of affordability}} [[File:Housing prices to personal income ratios.webp|thumb|right|300px|Housing prices 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}} ]] 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)}}

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.<ref>{{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}}</ref> The Median house price to income ratio was the primary indicator H1 of the 1991 World Bank/UNCHS Housing Indicator system.<ref>{{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}}</ref><ref>{{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}}</ref> 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.<ref>{{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}}</ref>

The indicator has been popularised by Demographia International, and was called the 'Median multiple' from their second comparative international survey in 2006.<ref>{{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}}</ref>

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.<ref name=":0">{{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}}</ref>

==Housing Affordability Rating== The 2024 Demographia International Housing Affordability report uses the following affordability categories based on the median multiple for a given market:<ref>{{Cite web|url=https://www.newgeography.com/files/2024-Demographia-International-Housing-Affordability.pdf |title=Demographia International Housing Affordability 2024 Edition |date=2024 |website= |publisher=Demographia |access-date=1 January 2025}}</ref> {| class="wikitable" !Housing Affordability Rating !Median Multiple |- |Affordable |3.0 & Under |- |Moderately Unaffordable |3.1 to 4.0 |- |Seriously Unaffordable |4.1 to 5.0 |- |Severely Unaffordable |5.1 to 8.9 |- |Impossibly Unaffordable |9.0 & Over |}

== References == {{Reflist}}

Category:Affordable housing