Archive for October, 2013

Miami Price-Income Ratio Defying Gravity Again

posted on October 31st, 2013 filed under: Financial Responsibility, Real Estate Market Data

A year ago, home prices in Miami had already risen so much faster than incomes that the ratio of median home price to median income was higher than at any time outside the bubble that burst.  (See Do Incomes Matter to Home Prices?)

With another year of low interest rates and cash buyers, the relationship between Miami home prices and incomes has deviated significantly further from historical norms.  The median price rose while the median income actually fell, according to data from the National Association of Home Builders.

Price-Income Ratio (NAHB) -- Miami -- Chart, Graph -- 1991-2013

[Geeks’ note: A few of the data points in the above chart were missing from NAHB statistics, and those gaps were filled by interpolation.]

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