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Housing Affordability Index (HAI)

About the Housing Affordability Index (HAI)

Housing attainability across most price points continues to be a challenge. Mortgage rates have effectively doubled from year-end 2021 and the continued increase in median home prices have strained the ability of buyers with a median family income to purchase a home.

When buying a median-priced home for $550,000, at an interest rate of 6.625 percent on a 30-year conventional mortgage and a down payment of 5 percent, the income needed to be at 30% of the estimated mortgage payment is $165,572 per year.  If you overlay this data point with the Census Median Family income projection of $100,900 for 2023, the buyer of this scenario would be short approximately $64,672 in annual gross income. This roughly translates into a Housing Affordability Index (HAI) of 61 (see page 9 of the Social Data Dashboard).

In the scenario where the borrower has a 20% down payment, the income needed for the same purchase was $136,773 still $35,873 short with an HAI of 74.

HAI Table revised
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