High home price to income ratios hiding behind low mortgage rates
The price-to-income ratio looks at the total cost/price of a home relative to median annual incomes. Historically, the typical, median home in the U.S. cost 2.6 times as much as the median annual income (so if the median income in an area was $100,000, the median price of a home would typically be about $260,000: $100,000 * 2.6).
| Metro Area | % Of Monthly Income Dedicated to Mortgage Payments, 1985-1999 | % Of Monthly Income Dedicated to Mortgage Payments, 2012 Q4 | Median Home Price Relative To Median Annual Income, 1985-1999 |
Median Home Price Relative To Median Annual Income, 2012 Q4 |
| UNITED STATES |
19.9%
|
12.6%
|
2.6
|
3.0
|
| New York |
30.7%
|
21.9%
|
4.0
|
5.2
|
| Los Angeles |
35.3%
|
29.0%
|
4.6
|
6.8
|
| Chicago |
21.4%
|
11.4%
|
2.8
|
2.7
|
| Dallas |
16.6%
|
9.3%
|
2.1
|
2.2
|
| Philadelphia |
17.5%
|
12.4%
|
2.3
|
2.9
|
| Washington, DC |
20.4%
|
14.9%
|
2.7
|
3.5
|
| Miami |
18.9%
|
13.5%
|
2.5
|
3.2
|
| Atlanta |
17.3%
|
8.1%
|
2.2
|
1.9
|
| Boston |
27.0%
|
19.0%
|
3.5
|
4.5
|
| San Francisco |
38.0%
|
28.8%
|
4.9
|
6.8
|
| Detroit |
15.8%
|
6.5%
|
2.1
|
1.5
|
| Riverside |
23.1%
|
14.9%
|
3.0
|
3.5
|
| Phoenix |
20.1%
|
12.7%
|
2.6
|
3.0
|
| Seattle |
25.0%
|
17.2%
|
3.3
|
4.1
|
| Minneapolis-St. Paul |
18.3%
|
11.2%
|
2.4
|
2.6
|
| San Diego |
31.3%
|
25.0%
|
4.1
|
5.9
|
| Tampa, FL |
17.5%
|
10.4%
|
2.3
|
2.5
|
| St. Louis |
15.6%
|
10.0%
|
2.0
|
2.4
|
| Baltimore |
19.5%
|
13.6%
|
2.5
|
3.2
|
| Denver |
20.2%
|
15.7%
|
2.6
|
3.7
|
| Pittsburgh |
14.3%
|
9.7%
|
1.9
|
2.3
|
| Portland, OR |
21.3%
|
17.3%
|
2.8
|
4.1
|
| Sacramento, CA |
25.9%
|
15.8%
|
3.4
|
3.7
|
| Orlando, FL |
18.5%
|
10.7%
|
2.4
|
2.5
|
| Cincinnati |
18.0%
|
9.6%
|
2.3
|
2.3
|
| Cleveland |
18.7%
|
9.7%
|
2.5
|
2.3
|
| Las Vegas |
21.7%
|
10.2%
|
2.8
|
2.4
|
| San Jose, CA |
35.2%
|
29.5%
|
4.6
|
7.0
|
| Columbus, OH |
17.5%
|
9.9%
|
2.3
|
2.3
|
| Charlotte, NC |
16.2%
|
10.9%
|
2.1
|
2.6
|
Salary to House by City
| Cities | 30-Year Fixed Mortgage Rate | % Change from 3Q14 | Median Home Price | % Change from 3Q14 | Monthly Payment (PITI) | Salary Needed |
| Pittsburgh | 3.98% | -0.14% | $135,000 | -6.90 | $740.05 | $31,716.32 |
| Cleveland | 4.05% | -0.18% | $121,200 | -6.70 | $746.91 | $32,010.41 |
| St Louis | 4.03% | -0.18% | $138,400 | -7.86 | $777.54 | $33,323.09 |
| Cincinnati | 4.09% | -0.16% | $138,100 | -7.32 | $781.32 | $33,485.23 |
| Detroit | 4.18% | -0.16% | $135,800 | -10.36 | $828.83 | $35,521.47 |
| Atlanta | 4.09% | -0.14% | $157,700 | -5.85 | $835.34 | $35,800.11 |
| Tampa | 4.13% | -0.17% | $160,000 | +10.34 | $880.42 | $37,732.20 |
| Phoenix | 4.06% | -0.17% | $200,300 | -0.10 | $948.69 | $40,658.08 |
| Orlando | 4.07% | -0.13% | $180,000 | +0.00 | $983.34 | $42,143.30 |
| San Antonio | 4.09% | -0.19% | $185,500 | -0.48 | $1,058.73 | $45,374.30 |
| Minneapolis | 4.07% | -0.18% | $210,000 | -4.15 | $1,111.29 | $47,626.53 |
| Dallas | 4.09% | -0.22% | $189,600 | -2.02 | $1,138.35 | $48,786.53 |
| Houston | 4.09% | -0.17% | $199,300 | -1.58 | $1,166.28 | $49,983.37 |
| Philadelphia | 4.14% | -0.15% | $213,300 | -7.78 | $1,187.99 | $50,914.04 |
| Baltimore | 4.03% | -0.16% | $233,200 | -8.84 | $1,228.78 | $52,661.96 |
| Chicago | 4.09% | -0.12% | $195,100 | -12.04 | $1,268.09 | $54,346.62 |
| Sacramento | 4.19% | -0.14% | $268,700 | -2.40 | $1,362.96 | $58,412.49 |
| Miami | 4.09% | -0.17% | $265,000 | -1.85 | $1,363.40 | $58,431.48 |
| Portland | 4.11% | -0.17% | $288,900 | -0.82 | $1,414.08 | $60,603.50 |
| Denver | 4.08% | -0.20% | $314,800 | -0.22 | $1,438.32 | $61,642.15 |
| Seattle | 4.15% | -0.13% | $352,000 | -2.20 | $1,699.70 | $72,844.31 |
| Washington | 3.98% | -0.22% | $372,800 | -4.19 | $1,805.88 | $77,394.82 |
| Boston | 4.05% | -0.21% | $383,200 | -4.18 | $1,867.83 | $80,049.93 |
| New York City | 4.22% | -0.15% | $390,000 | -5.34 | $2,042.50 | $87,535.60 |
| Los Angeles | 4.07% | -0.18% | $450,900 | -6.43 | $2,092.18 | $89,664.86 |
| San Diego | 4.07% | -0.21% | $493,100 | -4.77 | $2,226.76 | $95,432.68 |
| San Francisco | 4.02% | -0.18% | $742,900 | -0.20 | $3,323.79 | $142,448.33 |
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