3 ms·
"The researchers used a metric called a median multiple, which compares the average home price to the median yearly income for an urban region" Wouldn't it be
by anxrn 13y ago
"The researchers used a metric called a median multiple, which compares the average home price to the median yearly income for an urban region"
Wouldn't it be better to compare medians? (Median home price to median yearly income). It seems to me that you want to be robust to outliers in home price (Danielle Steele's mansion) in the same way that you're already robust to outliers in income (Mark Zuckerberg's paycheck)
- jdale27 13y agoFrom the original report (http://www.demographia.com/dhi.pdf http://www.demographia.com/dhi.pdf), it appears that they do actually compare medians as you suggest: "The Demographia International Housing Affordability Survey uses the 'Median Multiple' (median house price divided by gross annual median household income) to assess housing affordability" (p. 7).