Housing
The Most and Least Affordable Housing in America
A new report blames land use restrictions for driving up prices, but there's much more to it than that
A house in Cleveland might run you $115,000. A similar home in San Diego would cost you three times that, probably more. Different locations have different housing values, which won't be news to anyone. Whether the people who live in those metro areas can truly afford to buy them is another matter altogether.
Compiled by Wendell Cox and Hugh Pavletich, the 8th Annual Demographia International Housing Affordability Survey [PDF] bases its affordability measure on the “median multiple,” which is found by dividing the median home price by the gross annual median household income before taxes. Metro areas where the housing price is more than three times the income level are deemed unaffordable.