3 ms·

If that is true, why don't all areas with the same income average have the same home prices? Look at this data: http://ritholtz.com/2017/01/least-affordable-hou

If that is true, why don't all areas with the same income average have the same home prices? Look at this data: http://ritholtz.com/2017/01/least-affordable-housing-u-s/ http://ritholtz.com/2017/01/least-affordable-housing-u-s/

wernercd 10y ago
Because the same income average is one of a "bazillion" things that affect home prices. Pick a town with an average income in California compared to a town in Utah or Texas with the same average income. What's different? * Supply and Demand. Average income does not mean supply and demand are equal. * Area (Coastal Desert vs inland desert... beach front property in California vs... Utah...) * regulations (try to build stuff in San Francisco vs Dallas or Salt Lake City) * available area to build (density of San Fran vs Utah) * City/County/State Taxes (Compare property taxes for those locations) * etc, etc, etc. Hell... supply & demand ALONE would account for the difference price between California and Utah. THEN Add all the other bazillion differences...