Median price of existing single-family homes sold during the year, divided by median family income in that year.
Ratios are calculated by the Stanford Center on Poverty and Inequality using the Single-Family Existing-Home Sales and Prices compiled by the National Association of Realtors (NAR), and the U.S. Census Bureau Historical Income Tables for Families.
Each month, the Research Division of the National Association of Realtors (NAR) receives data on home sales from local associations and boards, and from multiple listing services nationwide. These data, covering 30-40% of all existing-home sale transactions, are used to estimate median home prices. Detailed methodological notes are available from the NAR.
A family is defined by the Census Bureau as a group of two people or more (one of whom is the householder) related by birth, marriage, or adoption and residing together; all such people (including related subfamily members) are considered as members of one family. The measure of family income used by the Census Bureau is the sum of the income obtained by all family members 15 years old and over. For additional methodological information, see the indicator Median Family Income.