<p>It is only possible if you also know the average fraction of income that is spent on housing in that area... and even then only if you assume either that rental costs per square foot are similar to ownership costs per square foot, or that the rent/buy decision is uncorrelated with income. </p>

<p>So: not really. Rental costs are correlated with income, but there's a lot of error. </p>

CC BY-SA 3.0
2015-04-15T04:00:30.760Z
2015-04-15T04:00:30.760Z
dismalscience
<p>Is it possible work out the average income of a household if one knows the rental cost per square meter of property?</p>

<p>Example: Edinburgh, Scotland = £2,125.00 per square meter.</p>

<p>I hope I have posted this in the right SO platform.</p>

<p>Thanks</p>

<econometrics>
How to work out average income based on square meter of property rented
SixfootJames
# How to work out average income based on square meter of property rented

(Asked by: username_0 on 2015-04-15)

Is it possible work out the average income of a household if one knows the rental cost per square meter of property?

Example: Edinburgh, Scotland = £2,125.00 per square meter.

I hope I have posted this in the right SO platform.

Thanks

**Tags:** econometrics

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## 1 answers

### Answer by username_1 on 2015-04-15. Score: 1 | Accepted answer

It is only possible if you also know the average fraction of income that is spent on housing in that area... and even then only if you assume either that rental costs per square foot are similar to ownership costs per square foot, or that the rent/buy decision is uncorrelated with income.

So: not really. Rental costs are correlated with income, but there's a lot of error.


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