VetoThat & Kettle1

Collaborated Research

NJ Home Price to Income Ratio

10
• 1980’s HPI/Income ratio saw a decline of about 40% from peak to bottom. It fell to
approximately its pre- bubble value
9
• The 2000’s bubble saw an 80% increase in HPI/Income Ratio (1996-2007) and would
have to drop approximately 60% from its current value to return to the pre-bubble value.
8 • Note that the HPI/Household income ratio Mirrors the data available for NJ Median
Home Price/Median Household Income

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1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
NJ HPI (Real) / Real NJ Median Household Income
Median NJ Home Price (Real) / Real NJ Median Household Income