Housing Affordability
The Housing Affordability Index measures whether a typical family earns enough income to qualify for a mortgage loan on a typical home. An index value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home.
Current Affordability Index
117.6
Near Balance
Month-over-Month Change
+0.43%
Improving
Index Interpretation
Median income can afford median home
Understanding the Index
More Affordable (Index > 100)
A typical family earns enough to qualify for a mortgage on a median-priced home.
At Balance (Index ≈ 100)
Income just enough to afford a median home. Market is at equilibrium.
Less Affordable (Index < 100)
Typical income is insufficient to qualify for a median-priced home.
How the Index Works
The Housing Affordability Index uses the most recent price and income data. It assumes a 20% down payment, qualifying mortgage rate, and median family income.
- Index > 100: More affordable than historical average
- Index = 100: At historical balance point
- Index < 100: Less affordable than historical average
Factors Affecting Affordability
- Median household income
- Home prices
- Mortgage interest rates
- Down payment requirements
- Property taxes and insurance