House Price To Income Path
Calculator
Results
- Price to income ratio
- 6.901567
- Deposit needed
- $105,173.91
- Median house price
- $701,159.41
- Median income
- $101,594.22
- Deposit in years of income
- 1.035235 yr
How the position develops over the projected years
- Median house price
- Median income
- Deposit needed
Year-by-year property projection
| 1 | 332,800.00 | 63,550.00 | 5.24 | 49,920.00 | 0.79 |
| 2 | 346,112.00 | 65,138.75 | 5.31 | 51,916.80 | 0.80 |
| 3 | 359,956.48 | 66,767.22 | 5.39 | 53,993.47 | 0.81 |
| 4 | 374,354.74 | 68,436.40 | 5.47 | 56,153.21 | 0.82 |
| 5 | 389,328.93 | 70,147.31 | 5.55 | 58,399.34 | 0.83 |
| 6 | 404,902.09 | 71,900.99 | 5.63 | 60,735.31 | 0.84 |
| 7 | 421,098.17 | 73,698.52 | 5.71 | 63,164.73 | 0.86 |
| 8 | 437,942.10 | 75,540.98 | 5.80 | 65,691.31 | 0.87 |
| 9 | 455,459.78 | 77,429.50 | 5.88 | 68,318.97 | 0.88 |
| 10 | 473,678.17 | 79,365.24 | 5.97 | 71,051.73 | 0.90 |
| 11 | 492,625.30 | 81,349.37 | 6.06 | 73,893.79 | 0.91 |
| 12 | 512,330.31 | 83,383.11 | 6.14 | 76,849.55 | 0.92 |
| 13 | 532,823.52 | 85,467.68 | 6.23 | 79,923.53 | 0.94 |
| 14 | 554,136.46 | 87,604.38 | 6.33 | 83,120.47 | 0.95 |
| 15 | 576,301.92 | 89,794.49 | 6.42 | 86,445.29 | 0.96 |
| 16 | 599,354.00 | 92,039.35 | 6.51 | 89,903.10 | 0.98 |
| 17 | 623,328.16 | 94,340.33 | 6.61 | 93,499.22 | 0.99 |
| 18 | 648,261.28 | 96,698.84 | 6.70 | 97,239.19 | 1.01 |
| 19 | 674,191.74 | 99,116.31 | 6.80 | 101,128.76 | 1.02 |
| 20 | 701,159.41 | 101,594.22 | 6.90 | 105,173.91 | 1.04 |
Comparison
| Scenario | Price to income ratio | Deposit needed |
|---|---|---|
| Doing nothing | 5.16 | 48,000.00 |
| Your scenario | 6.90 | 105,173.91 |
Formula
ratio_y = P_0(1+p)^y / [I_0(1+i)^y]= 6.90
Note
This is a simplified projection model. It compounds the growth, cost and return rates you enter at a constant annual rate and amortizes mortgages on a standard fixed-rate annuity; real property markets, rents, interest rates, vacancy, maintenance and running costs move irregularly and can fall as well as rise. Taxes are applied only as the flat rate and allowance you enter: stamp duty and other transfer taxes are usually banded, capital gains relief, principal-residence exemptions, rental-income tax, depreciation and allowable expenses vary by country and by your circumstances and are not modelled here. Transaction, legal, letting and selling costs are taken as the percentages you supply. Baseline comparisons hold the alternative flat and ignore what else the money might have done. These results are general information, not investment, mortgage, tax or legal advice: consult a qualified professional before committing to a property decision.
More in Property projections
See all →Frequently asked questions
What does the house-price-to-income ratio actually measure?+
It's the median (or typical) home price divided by median household income, used as a rough gauge of housing affordability over time. A rising ratio generally means homes are becoming less affordable relative to what people earn, even if both prices and incomes are increasing.
What's considered a 'normal' or historically typical ratio?+
It varies significantly by country and even by city, but many analysts flag ratios above roughly 3-5x median household income as stretched, though high-demand metro areas can sustain much higher ratios for a long time without an obvious correction point.
Why can this ratio keep rising for years without prices crashing?+
Affordability is also affected by financing conditions — lower interest rates, longer loan terms, or looser lending standards can let the same income support a larger mortgage, so the price-to-income ratio can rise sustainably for a period even without wage growth catching up.
Does a high ratio mean a housing market crash is coming?+
Not reliably — the ratio is a valuation signal, not a timing tool. Markets have stayed at elevated ratios for many years in some regions with high and durable demand, so treat a rising ratio as a signal of reduced affordability, not a prediction of an imminent price drop.
How should I use this projection personally?+
It's most useful for understanding the trend in affordability in a specific market over time relative to your own income growth, helping you judge whether waiting to buy is likely to make things easier or harder based on how the gap between prices and incomes has been moving.