Housing Bubble Risk Dashboard

Monitor housing market overvaluation indicators and compare to historical peaks

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Highest Risk Markets

Lowest Risk Markets

Risk Level Definitions

Low Risk

Score below 40. Healthy market fundamentals.

Moderate Risk

Score 40-55. Some overvaluation signs.

Elevated Risk

Score 55-70. Significant overvaluation.

High Risk

Score above 70. Bubble-like conditions.

Actual Price-to-Income

Example: 5.2x means the median home costs 5.2 times the median household income. Historically, a ratio of 3-4x was considered normal. Ratios above 6x often indicate significant affordability concerns.

Normalized Ratios

Example: 1.5x normalized means prices are 50% higher relative to income/rent compared to the 1991 baseline. This allows comparison across time periods and helps identify bubble conditions versus historical norms.

Price-to-Rent Ratio

Compares home values to annual rental income. A high ratio suggests it's cheaper to rent than buy, indicating potential overvaluation. The "fair value" range is typically 15-20x annual rent.