A housing affordability index compares median home prices to median income to determine the likelihood of a median-income family purchasing a median-priced home. However, the index does not account for many variables, such as inflated prices and credit restrictions, and may not be a reliable predictor of an individual’s ability to purchase a home. A […]

A housing affordability index measures the likelihood of a median-income family being able to purchase a median-priced home. The US National Association of Realtors produces a well-known index, but it may not be reliable due to variables like inflated prices and credit restrictions. A housing affordability index is a way of measuring the probability of […]

A housing affordability index compares the average house price with the average income to determine if middle-income families can afford a home. The US National Association of Realtors produces a well-known index, but it assumes certain things and does not consider all variables. The index is valuable for a general understanding of the market, but […]