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Well I can't dispute Fred and Hud. I wonder if the discrepancy has to do with the harvard data only considering metro areas, and metro areas having significantl
by whycombinetor 1y ago
Well I can't dispute Fred and Hud. I wonder if the discrepancy has to do with the harvard data only considering metro areas, and metro areas having significantly higher incomes but possibly not significantly higher median house price.
- alephnerd 1y agoMy hunch is they are using per capita income instead of median household income. If two partners are buying a house together (a fairly common occurrence) per capita ratios would treat both partners as an individual, but a household would help fix for that discrepancy. Median household incomes take into account households of all sizes (1 person households to n-person households), and if you compare against median price, you can help reduce the risks of outliers tainting any comparison.