3 ms·
I’d say it’s more interesting to look at recent immigrants income vs monthly payments. Existing residents aren’t necessarily buying new houses at 8x multiples.
by jmpman 7y ago
I’d say it’s more interesting to look at recent immigrants income vs monthly payments.
Existing residents aren’t necessarily buying new houses at 8x multiples. And the new arrivals to an area might be tech workers pulling in $400k, and can afford that $1.2M house with just a 3x multiple.
- pedrosorio 7y agoI'd say it's more interesting to look at income-after-taxes vs monthly payments. The same payments/gross income ratio for a worker earning a median salary is a lot better than for someone earning $400k (as the payments to net salary ratio for the latter is higher). Not to mention the probability of sustaining the income at the current level in the next 20 years is probably different as well.