The house-price-to-income ratio refers to the ratio of housing prices to the annual household income of urban residents.

The internationally accepted method of calculating the house-price-to-income ratio is the median value of the residential unit price divided by the median annual household income.

Annual household income refers to the annual pre-tax income of all family members, usually including both husband and wife. The median annual household income is also taken.

In developed countries, it is clear to count the annual household income by looking at the tax records, but in the Celestial Empire the situation is much more complicated

According to international practice, the current prevailing theory is that the house-price-to-income ratio is between 3 and 6 times as a reasonable range.

"First of all, your metaphor that the house price to income ratio of the imperial capital has been more than 20 is wrong. Based on a set of real estate worth one million, the average income of a family of two in the imperial capital should be 60,000 or 70,000 yuan, so that the house-price-to-income ratio is about 15."

"Even fifteen is much higher than the internationally recognized percentage."

"The situation of the Celestial Empire is very special, and the imperial capital is even more special. At present, those brick houses comment on the high and low house price to income ratio, which is nothing more than hoping that people can afford to buy houses. In fact, in some Western and Northern European countries where the house-price-to-income ratio is 2~3 times, the housing ownership rate is only about 30%, just like Switzerland, Germany, and Sweden. However, in Eastern European countries with a very high house-price-to-income ratio of 25~30 times, the housing ownership rate is as high as more than 90%, such as Hungary and Bulgaria. Looking at our neighboring island countries, their house-price-to-income ratio has been declining for many years, and the home-price-to-income ratio in the United States is also at the so-called reasonable level, but its home-ownership rate has remained basically stable for many years, and there has not changed much. What does this mean? The so-called house-price-to-income ratio has nothing to do with whether or not you buy a house," Jiang Hui said while waving his hand.

"But you see, if you don't talk about other places, just around our school, when I first entered college in 2003, the average price was five or six thousand, but now it has doubled. Is it possible that it can continue to rise sharply? Under the circumstance that the house-price-to-income ratio is so high and the increase is limited, it is a thankless task to stimulate employees to buy houses." Tang Minghua and Jiang Hui have a relatively strong relationship, and they often speak directly with Jiang Hui, especially the things that he thinks are good for Jiang Hui, even if they are not good, he dares to say them.

"Who said you can't continue to rise sharply? Don't listen to the opinions of the so-called bricks. The housing prices of the Celestial Empire have never been in line with the theory that the brick family is called a beast. In foreign countries, a house is a house, more like a consumer product. But in China, if you don't have a house, where can you hang your household registration? Where do your children go to school? What should you do if you rent a house and are evicted by the landlord every once in a while? Will the wife ask for a house? If you don't have a house in the city, will you lack the feeling of home?" Jiang Hui asked a few questions one after another.

In the Celestial Empire, if you don't have a house account, you may be able to hang it on the company's collective account or the talent market. But getting your kids going to school is definitely going to be a big problem. Don't you see all kinds of sky-high school district houses everywhere in later generations, isn't this because children's school is associated with the house?

Let's talk about renting a house, let's not say that the landlord is going to sell the house or not renting it, but you will not accept the rent increase every year?

As for getting married and buying a house, this is a mandatory requirement for almost all mothers-in-law in the Celestial Empire. The "character" of the mother-in-law is a virtual character that has been popularized by development companies after the real estate market has developed to a certain stage. From "three rooms to four rooms, pick up the mother-in-law" to "you don't buy a house, unless you settle the mother-in-law", the mother-in-law has become the public relations object of many developers in the hype.

In the past, the debate on whether to get married and buy a house has become a no choice with the emergence of this "character" - because there is a mother-in-law, so you must buy a house when you get married.

"Mother-in-law economy" has slowly become synonymous with "just need for marriage room". Jiang Hui thinks that if a social survey is conducted now, and a marriageable man is asked what he should prepare first if he gets married, most of the answers will be "house". There is no doubt about it, because there is no house, and the mother-in-law does not marry her daughter.

"Mr. Jiang, we have all considered what you said. It is precisely because of these reasons you said, coupled with the rapid development of the Celestial Empire's economy, that housing prices have risen sharply in recent years", Tang Minghua did not deny what Jiang Hui said, but felt that housing prices had risen to a peak.

"Just because it's already risen sharply means that it won't rise in the future? You see, in 10 or 8 years, you will find that the current housing prices are only a fraction of what they are."

"Mr. Jiang, it's not that exaggerated, right? Who else can afford to buy a house?", Tang Minghua said with a smile, obviously not believing what Jiang Hui said.

It is estimated that no one in the world will believe that the housing prices in the imperial capital will be more than ten times that of the current one, including Jiang Hui in the previous life.

However, the fact is that under the wave of decline, the housing prices in the imperial capital have risen steadily step by step.

Just like the economy of the Celestial Empire, countless bricks around the world are clamoring for the collapse of the Celestial Empire, but when the Celestial Empire's economy rushes all the way to the second place in the world, and the whole world is growing sluggishly, there is still no sign of the collapse of the Celestial Empire's economy.

The facts tell us that the brick family should listen to the words of the beast in reverse, which is close to the facts!

"Boss, let me ask you, could you have imagined that we would be where we are today three years ago? Taking houses as an example, how many people want to stay in the big cities of the imperial capital? How many people want to go from the fourth- and fifth-tier cities to the provincial capitals? How many people want to move from the countryside to the county seats? The Celestial Empire is still in the midst of great social changes, and the urbanization process has just entered the stage of fast lane. The house is no longer simply a problem that can be explained by Western empirical formulas."

"I'm mainly worried that if we encourage our employees to buy houses, if the house price falls, it will have an unnecessary impact on our company's operation."

"You tell everyone that within 10 years, anyone who buys a house through the company's interest-free loan, if the house price falls, they can sell the house to me, and I will let them not lose a penny with interest, which can be written into the loan agreement," Jiang Hui said.

What will the housing prices look like in ten years compared to now, Jiang Hui is very clear. This kind of commitment seems to be very risky, but it is not a dime risk. Even under the subprime mortgage crisis in 2008, house prices only corrected slightly, offsetting the gains in 2007, and then continued to rush to peak after peak.

Only higher, no highest!