Short answer. The U.S. home price-to-income ratio has more than doubled since the mid-1980s: from roughly 2.4× in 1985 to 5.4× in 2024. That 2024 reading is the highest in the 56-year series and exceeds the 2005 cycle peak of about 4.2×.
| Year | Median Price | Median Income | Ratio |
|---|---|---|---|
| 1985 | ~$75,500 | ~$23,600 | 3.2× |
| 1995 | ~$110,500 | ~$34,100 | 3.2× |
| 2005 | $219,000 | ~$46,300 | 4.7× |
| 2012 | $176,600 | ~$51,400 | 3.4× |
| 2019 | $272,500 | ~$68,700 | 4.0× |
| 2024 | $407,500 | ~$80,600 | 5.1× |
The price-to-income ratio divides the median home price by the median household income. It is the most direct measure of whether housing is becoming more or less accessible to the average earner, independent of interest rate effects.
Historical benchmarks from the data
- 1968: Median existing home $20,100 / median household income ~$8,000 → ratio ≈ 2.5×
- 1985: Median existing home $75,500 / median household income ~$31,000 → ratio ≈ 2.4×
- 2000: Median existing home $139,000 / median household income ~$51,000 → ratio ≈ 2.7×
- 2005: Median existing home $219,000 / median household income ~$52,000 → ratio ≈ 4.2×
- 2011: Median existing home $166,200 / median household income ~$50,000 → ratio ≈ 3.3×
- 2021: Median existing home $357,100 / median household income ~$71,000 → ratio ≈ 5.0×
- 2024: Median existing home $408,000 / median household income ~$80,000 → ratio ≈ 5.1×
What drove the increase?
Three forces account for most of the expansion: first, the shift from low-density to high-demand metro areas as the primary sites of job growth, driving geographic price divergence; second, restrictive zoning and NIMBYism that constrained supply in high-demand markets; and third, the post-2008 structural under-building that created a cumulative supply deficit estimated at 3–5 million units.
Why it matters more than the payment ratio
Monthly payments fluctuate with interest rates — a rate drop from 7% to 5% cuts the payment by about 17%. But the price-to-income ratio only improves when prices fall or incomes rise. Because prices are sticky (sellers rarely accept nominal losses), a high ratio tends to persist and compounds affordability difficulty for first-time buyers who do not have existing home equity to deploy as a down payment.
Sources
National Association of Realtors Existing Home Sales; U.S. Census Bureau American Community Survey median household income; Housing Almanac annual series 1963–2024.
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