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hatsuseno t1_j9jwc6i wrote

Not sure where they pulled these numbers from for NL; but looking at the median income (around 38k gross) and the average price for an appartment (multiplier 9.8) or a single family home (multiplier 11.8) I don't see how one could reasonably come to a factor of 7.19 in the graph.

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waszumfickleseich t1_j9k9kdj wrote

pretty much all of numbeo's numbers are always pulled out of their ass, which is why it should be avoided by anyone looking for valid data

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proof_required OP t1_j9jyoxc wrote

You can check here but their median house price calculation is something like this

  public double calculateMedianHousePrice() {
    return (calculateMedianHousePriceCityCentre() + calculateMedianHousePriceOutsideOfCentre()) / 2;
  }

Also

> Price to Income Ratio is the basic measure for apartment purchase affordability (lower is better). It is generally calculated as the ratio of median apartment prices to median familial disposable income, expressed as years of income (although variations are used also elsewhere). Our formula assumes and uses: > * net disposable family income, as defined as 1.5 * the average net salary (50% is assumed percentage of women in the workforce) > * median apartment size is 90 square meters > * price per square meter (the formula uses) is the average price of square meter in the city center and outside of the city center

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prylosec t1_j9l09l3 wrote

It's kinda weird that they're calculating the mean and calling it a median.

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titangord t1_j9llr9f wrote

They are doing the average of two medians.. one in the center and one not seems like

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Chris-1235 t1_j9lnkmo wrote

Yeah, totally broken. You can't buy a house in NL with just over 3 years of "disposable income". I can't fathom where that would be possible in the US either. Sounds like the top salaries and the cheapest houses skew the distribytions enough, to result in a useless ratio.

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whooguyy t1_j9n4hqo wrote

You can’t average two medians. If there are 5 times more houses in the city center than there are out of it, this will completely skew it in favor of the out of city center median

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Striking-Tip7504 t1_j9lfnzf wrote

Plus the ratio doesn’t matter that much if the bank won’t give you the loan anyway. Which in case of the Netherlands you’re pretty much not getting if you’re buying alone in or around the big cities. Even people who are higher educated with good jobs can’t buy alone in NL. You either need a partner, rich parents or be getting that doctor/lawyer type money.

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bigloser42 t1_j9lu8j2 wrote

Could be using average household income. That’s $70k which works out to $311k house price which doesn’t feel crazy.

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