A house in Sioux City Iowa valued $ 118647 where housing index is 47. What would a house of comparable value cost in Boston, MA where housing index is 182?

Question

I'm having trouble undsertanding how to get the answer for this question. I'm so lost. 😭 lol 

Answer 1

The ratio of the housing index in Boston to the housing index in Sioux City Iowa is 182/47 or 3.87234

 

Now, just multiply the house price in Sioux City Iowa, $118,647 times the ratio of housing price indices or

 

$118,647 *  3.87234 = $459,442

 

The comparable house in Boston will cost $459,442

 

Hope this helps