Alexander Hermann, a researcher at Harvard\u2019s Joint Center for Housing Studies, said median homes used to cost three times the median income or less in 75 of the nation\u2019s largest 100 housing markets in 1990. Ask The Post AIDive deeper<\/p>\n\n\n\n
Today, that\u2019s true in only three out of 100 markets.<\/p>\n\n\n\n
According to data provided to The Washington Post by the Harvard center, the average price-to-income ratio of homes shot up in the 2000s when interest rates were low. Amid today\u2019s high rates, it hasn\u2019t come down. It\u2019s much harder to afford a house with a high interest rate when the house itself is far pricier.<\/p>\n\n\n\n
\u201cBy price-to-income and other metrics, home buying was a lot more affordable, even if interest rates were high,\u201d Hermann said, noting that even a low rate that makes the monthly payment manageable wouldn\u2019t help prospective buyers who can\u2019t afford the down payment on a house five times their income.<\/p>\n\n\n\n
\u201cThe difference between now and the \u201970s and \u201980s \u2026 is that prices were definitely lower then, and the supply challenges were not the same,\u201d Hermann said.<\/p>\n\n\n\n
Read it all<\/a>.<\/p> Page One: \n\n\u201c.. median homes used to cost three times the median income or less in 75 of the nation\u2019s largest 100 housing markets in 1990.\n\nToday, that\u2019s true in only three out of 100 markets.\u201d\n\n@washingtonpost https:\/\/t.co\/mXIUisNcXg<\/p>\u2014 Carl Quintanilla (@carlquintanilla) October 19, 2026<\/a><\/blockquote>\n