Home Price-to-Income Calculator
Is your market affordable or overvalued? Calculate the price-to-income ratio, compare 19 US cities, track the ratio vs historical averages, and see where the US stands globally.
US national median home price-to-income ratio over time. Your ratio of 4.7x vs historical average of 4.1x.
| Year | US Avg Ratio | Context |
|---|---|---|
| 1990 | 3.2x — Moderate | |
| 1995 | 3.4x — Moderate | |
| 2000 | 3.5x — Moderate | Pre-bubble baseline |
| 2002 | 3.8x — Moderate | |
| 2004 | 4.2x — Moderate | |
| 2006 | 4.7x — Moderate | Housing bubble peak |
| 2008 | 4.1x — Moderate | |
| 2010 | 3.6x — Moderate | |
| 2012 | 3.3x — Moderate | Post-crisis low |
| 2014 | 3.6x — Moderate | |
| 2016 | 3.9x — Moderate | |
| 2018 | 4.2x — Moderate | |
| 2020 | 4.8x — Moderate | COVID demand surge begins |
| 2022 | 5.8x — Unaffordable | |
| 2024 | 5.5x — Unaffordable | Current (highest since 2006) |
Is the market you are evaluating overvalued or undervalued relative to historical norms?
How to Use the Home Price-to-Income Calculator
The price-to-income ratio is one of the most widely used measures of housing affordability. It answers a simple question: how many years of income does it take to buy a home? Lower is better — historically, anything under 3x was considered affordable.
Quick Calculator
Enter the home price (or the median home price in a market you are analyzing) and your annual household income before taxes. The calculator instantly shows your price-to-income ratio, rates it on a four-tier scale, and tells you the maximum affordable home price at 3x income.
Advanced: Historical Context and City Comparison
The Historical Context tab shows how your ratio compares to US averages from 1990 to 2024, putting today's numbers in perspective. The City Comparison tab shows price-to-income ratios for 19 major US metros. The Income Needed tab calculates what household income you would need to buy at 3x, 4x, and 5x ratios.
Pro: Market Valuation and International Data
The Market Valuation tab compares your ratio to historical averages to estimate over- or undervaluation. The Dual Income Analysis shows how a partner's income changes affordability. The International Comparison benchmarks US housing against Australia, Canada, the UK, Germany, and other developed nations.
Price-to-Income Ratio Formula
Example: $450,000 home / $95,000 income = 4.7x ratio
Affordability Scale:
Under 3.0x → Affordable
3.0x – 4.9x → Moderate
5.0x – 6.9x → Unaffordable
7.0x+ → Severely Unaffordable
Max Affordable Price (3x rule) = Annual Income × 3
Income Needed = Home Price / Target Ratio
Over/Undervalued vs History (%) = (Current Ratio − Historical Avg) / Historical Avg × 100
The 3x rule was the traditional guideline used by financial advisors before the 2000s. It aligns with the conservative 28% front-end DTI ratio — a home at 3x income with 20% down and a 30-year mortgage at moderate rates produces a payment close to 20% of gross income. Today, many homebuyers have moved to 4–5x as a practical reality in high-cost markets.
Example: Evaluating a $450,000 Home on a $95,000 Income
Home Price: $450,000 | Annual Income: $95,000
| Price-to-Income Ratio | 4.7x — Moderate |
| US 2024 Average Ratio | 5.5x — Unaffordable |
| Your Ratio vs US Average | More affordable (−14.5%) |
| Max Affordable at 3x Rule | $285,000 |
| Max Affordable at 5x Stretched | $475,000 |
| Income Needed for 3x | $150,000 |
| Income Needed for 4x | $112,500 |
| With Partner ($60K) | Combined $155K → 2.9x (Affordable) |
This household is in the moderate zone on a single income, slightly above the traditional 3x guideline but well below the national average. Adding a partner's income pushes the ratio below 3x, making this a comfortable purchase by historical standards.