Here is the data per state, note a lower number either means low house prices and/or higher median family income:
| State/Province | How Many Years To Buy A House |
|---|---|
| West Virginia | 2.21568066 |
| Oklahoma | 2.36797737 |
| Kansas | 2.42654662 |
| Iowa | 2.47823832 |
| New Brunswick | 2.51184328 |
| Ohio | 2.56427134 |
| Arkansas | 2.61686959 |
| Alabama | 2.6863378 |
| Indiana | 2.70194261 |
| Mississippi | 2.76253494 |
| Nebraska | 2.78169827 |
| Kentucky | 2.80850942 |
| Missouri | 2.82993956 |
| Michigan | 2.90811292 |
| Illinois | 2.9293798 |
| Newfoundland | 3.01470802 |
| Pennsylvania | 3.0664009 |
| Saskatchewan | 3.09658467 |
| Wisconsin | 3.14843847 |
| Texas | 3.23735828 |
| Connecticut | 3.24172618 |
| Georgia | 3.24772507 |
| Louisiana | 3.26131224 |
| South Carolina | 3.30355523 |
| Tennessee | 3.31583171 |
| Minnesota | 3.44344644 |
| South Dakota | 3.45299246 |
| Prince Edward Island | 3.46880824 |
| North Carolina | 3.52653424 |
| Maryland | 3.55139616 |
| Manitoba | 3.61484607 |
| Nova Scotia | 3.61626551 |
| Delaware | 3.62101003 |
| North Dakota | 3.63925237 |
| New Hampshire | 3.72323663 |
| Virginia | 3.73062938 |
| Alberta | 3.78365793 |
| Wyoming | 3.85966802 |
| New Jersey | 3.91373862 |
| New Mexico | 3.92097411 |
| Alaska | 3.98723878 |
| Vermont | 4.03539626 |
| Maine | 4.11234811 |
| Florida | 4.1394803 |
| Rhode Island | 4.22667173 |
| Quebec | 4.32752641 |
| Arizona | 4.33107727 |
| New York | 4.46460864 |
| Utah | 4.59720243 |
| Idaho | 4.68830637 |
| Nevada | 4.76883811 |
| Montana | 4.86065473 |
| Massachusetts | 4.92592291 |
| Colorado | 5.15798618 |
| Washington | 5.2007066 |
| Oregon | 5.39786454 |
| District of Columbia | 6.79460473 |
| California | 6.89813526 |
| Hawaii | 7.65867247 |
| Ontario | 7.709078 |
| British Columbia | 8.68398889 |
Why are house prices so relatively high in British Columbia, Ontario, California and Hawaii compared to incomes?
House prices are relatively high in British Columbia, Ontario, California, and Hawaii compared to incomes due to several interrelated factors:
1. Demand and Supply Imbalance
- Population Growth: These regions experience significant population growth due to their desirability, resulting in increased demand for housing.
- Limited Land Availability: Physical geography limits the amount of developable land, especially in places like Hawaii and parts of California and British Columbia. This scarcity drives up prices.
- Urbanization: High demand for urban living in major cities like Vancouver, Toronto, Los Angeles, San Fransico and Honolulu increases property values.
2. Economic Factors
- High Incomes and Wealth: These regions often have higher average incomes and concentrations of wealth, which can drive up real estate prices. However, the price increases can outpace income growth, making housing less affordable relative to local incomes.
- Foreign Investment: Especially in British Columbia and Ontario, significant foreign investment in real estate has driven up prices. Investors often buy properties as safe investments, sometimes leaving them vacant, which reduces supply for local residents.
- Low Interest Rates: Historically low interest rates made borrowing cheaper, encouraging more people to buy homes, which drove up prices.
3. Regulatory and Policy Factors
- Zoning Laws and Regulations: Stringent zoning laws and regulations can restrict new housing developments, limiting supply and driving up prices. For instance, California has some of the strictest environmental and zoning regulations.
- Property Taxes and Incentives: Tax policies can influence real estate markets. For example, favorable property tax regimes or incentives for homeownership can increase demand.
4. Quality of Life
- Desirability: These regions offer high quality of life, including good weather, natural beauty, economic opportunities, and cultural amenities, making them attractive places to live.
- Amenities and Infrastructure: Well-developed infrastructure, educational institutions, healthcare facilities, and entertainment options add to the desirability of these areas, driving demand.
5. Speculation and Investment
- Real Estate as an Investment: In all these regions, real estate is seen as a strong investment, leading to speculation. Investors buying properties with the expectation of price increases can drive prices higher.
- Short-term Rentals: The popularity of short-term rental platforms like Airbnb can reduce the availability of long-term rental housing, driving up both rental and purchase prices.
6. Global Factors
- Global Economic Trends: Global economic conditions and trends, such as international capital flows, can influence local real estate markets. High global liquidity can lead to more investment in real estate in desirable regions.
Why do you think those states have such high house prices?
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