Their "more adverse" forecast projected a drop of 48percentt — suggesting that important housing ratios, like price to rent, and price to construction cost — would fall to their lowest levels in 20 years.
"We literally took the 15-foot depth, multiplied it by four, knowing that a long house ratio would be four to one, and threw a test pit out 60 feet and landed right on the back wall at the end of the house," Ms. Harper said.
Appropriate jobs-housing ratio may achieve high self-containment.
Today, Palo Alto has a median home price of $2 million, the highest jobs-to-housing ratio in all of Silicon Valley with three jobs for every housing unit, and 42percentt of its land under conservation protections against development.
Section 2 measured socioeconomic status on the basis of area of residence, school fee structure, type of house, ratio of number of rooms to number of people living in the house, the type of transportation they have and their number, possession and number of household appliances including air conditioner, computer, microwave oven and television.
First, after a boom the housing p/e ratio usually undershoots.
Combine that with a housing P/E ratio over 50, and it isn't difficult to imagine some softening on the horizon.
"If you liken it to a household account, that's not a bad mortgage to house value ratio," Mr Kershaw added.
Note that history provides guides for assets other than exchange rates: when house price/income ratios, or price/earnings ratios depart far from historical levels, they revert.
