Housing Affordability Index — Definition and What It Means for Your Income
A measure comparing median household income to the income needed to afford the median-priced home.
The Housing Affordability Index compares the median household income in an area to the income required to qualify for a mortgage on the median-priced home, assuming standard down payment and interest rate assumptions. A value of 100 means the median family has exactly enough income to qualify for the median home. The 2024 national median household income is $83,730 (Census ACS 2024).
Why it matters
This index reveals whether homeownership is realistically accessible to typical earners in a given market — useful for understanding rent vs. buy decisions.
Example
A Housing Affordability Index of 120 means the median family income is 120% of what's needed to qualify for the median home — homeownership is broadly accessible. An index of 60 means significant affordability challenges.
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Housing Affordability Index — FAQ
What does a low Housing Affordability Index mean?
A low index (below 100) means the median household income is insufficient to comfortably afford the median-priced home — common in high-cost coastal cities.