Learning about the Housing Affordability Index (HAI)
In Q3 of 2022, a median-priced home of $525,000, at an interest rate of 6.5 percent on a 30-year conventional mortgage and a down payment of 5 percent, requires an income to qualify of about $160,800. Overlaying this data point with the Census Median Family income projection of $80,200 for 2022, the buyer(s) of this scenario would be short approximately $80,600 in annual gross income. This roughly translates into a Housing Affordability Index (HAI, referenced in slide 9 of this section) of 50.
Even with a 20% down payment, the income needed for the same purchase was $133,588, leaving the buyer(s) short approximately $53,388 in annual gross income (HAI of 60).