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by thedougd 1494 days ago
No, it's a ratio of remaining debt to yearly income. Notice they say new home owners have a multiple of 4 to 5.

On average a person making 100k a year has 150k or remaining debt.

2 comments

More specific, it's the outstanding debt to disposable (i.e., after tax) yearly income.

Even more specific, I it's probably the total outstanding mortgage debt in a country divided by the total disposable household income in the country, including incomes of non-mortage holders and renters. If you think that denominator doesn't make much sense, I largely agree, but it's fairly standard to calculate it that way in macro-economic reports. So I believe the article writer actually misinterpreted that number, writing that it's 150% of homeowners income.

Ah this makes way more sense!