Description
The Housing Price to Income Ratio refers to the number of years a household's disposable income is required to purchase a home. It is calculated by dividing the median housing price by the median household income and serves as an indicator of housing affordability relative to household income.
According to the World Bank, the housing price to income ratio in developed countries typically ranges from 1.8 to 5.5 times, while in developing countries, it generally falls between 3 to 6 times.