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What does the ratio of house price to income mean?
Hello!
The ratio of house price to income refers to the ratio of total house price to annual household income. Different institutions may adopt different statistical indicators and different calculation methods. The average house price-income ratio of a country is usually calculated by the ratio of the average annual household income to the average house price.
That is, the ratio of house price to income = total house price per household ÷ total annual income per household.
The ratio of house price to income reflects the difficulty of buying a house in a certain city and the bubble in the real estate industry.
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