bostonbubble.com

[news]

Use this forum thread to discuss the following link.

Description: Home price to income ratio by zip code
URL: http://www.ushousingmeltdown.org/house-value-to-income-ratio.asp
Info/Broken?: http://www.bostonbubble.com/link_info.php?id=1853

Subscribe to New Links: RSS Feed
Suggest a Link: Reference Suggestion Forum

[balor123]

For Waltham (02453):

Historical Data:
Year Median Income Median Home Price MHP/MI
1999 $50,189 $243,400 4.8
2005 $56,975 $430,392 7.6 Overvalued: 29%

Forecast Data:
Year Median Income x MHP/MI = Median Home Price
2008 * $62,621 x 4.8 = ** $303,691
2012 * $71,030 x 4.8 = ** $344,472

From recent CNN article:
Median family income
(per year) $80,396

Median home price $389,915

MHP/MI: 4.84

Now if interesting houses in Waltham were prices at $389k and a MHP/MI of 4.8 were reasonable to begin with, then I'd say there is no bubble.

[Dorchester Grandma]

In my zip code (02124) homes were 47% overvalued in 2005. My income is right in step with others here which is probably why I am so comfortable in this neighborhood. It also explains why I have been unable to buy here and why there have been so many foreclosures in this zip code.

I feel increasingly angry at the developers and flippers who took over so many Dorchester triple deckers to make a hefty profit for themselves. Locals have had to pay 6 times their income to live in their own neighborhoods or keep on renting as I have.