What is the Housing Affordability Index?
The Housing Affordability Index, calculated by the Runstad Center for Real Estate Studies, measures the ability of a middle income family to carry the mortgage payments on a median price home. When the index is 100 there is a balance between the family’s ability to pay and the cost.
Higher indexes indicate housing is more affordable. For example, an index of 130 means that a median-income family has 30 percent more income than the bare minimum required to qualify for a mortgage on a median-price home. An index below 100 means that a median-income family has less income than the minimum required.
between the family’s ability to pay and the cost. Higher indexes indicate housing is more affordable.
For example, an index of 126 means that a median-income family has 26 percent more income than the bare minimum required to qualify for a mortgage on a median-price home. An index of 80 means that a median-income family has less income than the minimum required.