Rationale - what it means and why it is an important measure
In a responsive and efficient housing market, the range of housing prices and rents have to be such that they correspond to all sections of the population, including the lowest segments. The rent-to-income ratio as well as housing prices in general provide a good measure of housing affordability at the city level. They also convey the greatest amount of information on the overall performance of housing markets.
How it is compiled, what data are needed
The ratio of median annual rents of dwellings to the median annual household incomes of renters (USD$), in reference to government-owned houses.
