Introduction

The sophisticated relationship between income and housing prices offers a

significant sign of the economic health and well-being of a society. As can be
observed the United States has gone through great changes in its economic
terrain over the last ten years, trying to understand the way the income-
housing price ratio works ends up being of paramount importance for
policymakers, economists, and the general population equally. The
following research paper seeks to establish a meticulous analysis of the
income-housing price ratio in the United States over the last decade, to
simplify the multifaceted interaction between these two crucial elements of
the nation’s financial woven fabric.

Housing has always been thought of as the building blocks of the American
Dream, encompassing stability, security, and personal achievement. Yet, the
dream of having your own home has grown substantially into an evasive
vision for many, as the ever-rising housing prices have surpassed the
increase in household incomes. In light of this, our research aims to dive
deep into the intricate aspects, which contribute to the changes in the
income-housing price ratio, unraveling the socioeconomic impacts, and
possible policy changes.

The last ten years have been highlighted by a chain of economic

developments, from the aftermath of the 2008 financial crisis to the
unsurpassed obstacles caused by the global pandemic in 2019. These events
have had a lasting effect on the US housing market, and income structures.
The research paper intends to characterize the unique stages of this period.
Investigating how recessions in the economy, financial strategies, and
changes in society have altered the accessibility of housing for the American
population.

When analyzing the income-housing price ratio, our research utilizes a

multidimensional strategy, combining data from different sources, such as
governmental housing reports, income questionaries, and real estate
metrics. The employment of various datasets permits a thorough, and
subtle understanding of the factors impacting the ratio from macro-level
trends to domestic shifts in the housing market across different cities, and
areas.

Proposed research question:

How did the income-housing price ratio change over the last
10 years in the US?

Proposed sub-questions:

1. How did the median income change over the last 10 years?
2. How did the median housing price change over the last 10
years?
3. Does it affect economic equality, and if so, how?
4. Is there any correlation between the ratio and the interest
rates?

As we traverse the chapters of this research, we encourage readers to dive

deep into the maze of statistical analysis, economic data, and real-world
implications. At the end of this research paper, we would hope, that we
have made a solid contribution not only to the academic discussion
regarding the economics of housing but also to making realistic
recommendations for creating policies that shape a housing market where
the heartbeat of the American dream never stops.