What's a good house price to income ratio?

I understand there are lots of factors that can change this that are outside of income (such as down payment, family circumstances, etc)

But generally, how many times more should your house be worth over your income? (Min max maybe)

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All about preference - we are at 1.2x (were approved for a 2.5M loan and bought for 700k). We like the flexibility of being able to afford our lifestyle on less than one salary and figured we dont actually need a big house to be happy.

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Yup, no matter where you live, a big house is gonna cost you more to maintain that something smaller.

The number I keep hearing is ~3. ie. House price is roughly 3x the household income

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Traditional is 3x. In the low interest rate environment, people were pushing 5x. Low interest rate days are gone and appraisals aren't meeting purchase price so probably closer to 2.5x now.

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You need to model this on your own based on the loan amount, interest rate, and taxes.

Properly taxes can vary a lot between states and counties.

If you live in a super high cost area you might need to push the DTI more than someone in the heartland.

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Mine is 1/4 of my monthly income - I am a single mom so I wouldn’t want It any other way

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That's pretty dope

Really no good rule of thumb because everyone’s budget / situation is different.

Personally I like % of income more but even that depends a lot from person to person.

Personally wouldn’t go over 33% of income towards monthly payment or 5x annual income but I’m sure there are edge cases where that works. 20-25% of income is a lot more comfortable in my experience.

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Yup, this is extremely common for older buildings.

A perfect example was the condo complex that collapsed in FL. Underinvestment for decades made the condo association essentially bankrupt.

What it takes to maintain a large building is no joke.

I think the rule of thumb is your total debt per month should be under 36% of your gross income

Pro tip OP, when asking stupid questions like this, position it as “what is your ratio?” Rather than “what is the rule?” Because people will gladly share their numbers but will flip out at the latter

My house is roughly 2x of my household income

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