[quote author="irvine_home_owner" date=1233129420][quote author="freedomCM" date=1233128252][quote author="irvine_home_owner" date=1233127988]The 3x income was also vogue during the time when there were very little adjustable loans and fixed rates were 10% (or higher).
Now that fixed rates are 4-4.5%... you could probably go 4-5x... but Irvine housing is still above that.</blockquote>
All this confuses the point. which is: <strong>25-30% of income towards housing</strong> is the most that is sustainable for most people, given other debt service (cars/edu/etc), savings and retirement needs.</blockquote>
I agree... and I would like to add just using "price" is also confusing since factors like down payments, interest rates, HOAs, taxes (ie other "housing" expenses as you said) are not factored into price.</blockquote>
Income alone is just as confusing, and only represents people that live paycheck to paycheck. Keep in mind the asian demographic in Irvine has increased considerably and they tend to have little to no documented income. As I have said before, amount of available liquid cash would be a better indicator.