In 1968 the Median Household Income in the U.S. was 7,743 and the Median cost of a home was 20,100 a 2.6 to 1 ratio.
In 2005 the Median Hosehold income was 46,326 and the Median cost of a home was 219,000 a 4.7 to 1 ratio.
These figures are from the U.S. Census Bureau Tables 669 an 942.
Based on affordability, homes were much more affordable in 1968 than they are today. Keep in mind that income and housing coasts can vary significantly from one part of the country to another, as can interest rates. Though the above data does show that a much greater share of household income is required to buy a home today than 40 years ago, with similar downpayment percentages.
Median household income is about 49k now and a median home is 201k and dropping. As long as interest rates stay relatively low, I wouldn’t expect a 2.6 to 1 ratio anytime soon but it should gravitate towards that the next couple of years.
“In 1968 the Median Household Income in the U.S. was 7,743 and the Median cost of a home was 20,100 a 2.6 to 1 ratio.”
Ib 1966 I was making $7,800/yr and paid $34,000 for our home and in the 6 years prior had saved up the $7,000 that we put down when I was making even less.