What the house price-to-income ratio can tell buyers

The OECD tracks a house price-to-income ratio as one measure of housing affordability. If prices rise faster than incomes, the ratio goes up, indicating a bigger gap between what homes cost and what households earn.

Local conditions still matter. A national series combines places where prices can move differently, and it gives limited information about a buyer's borrowing costs. The OECD publishes related measures, including the price-to-rent ratio, so readers can compare different aspects of the housing market.