HOI Indicates Affordability at All-Time High

The National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) rose to 75.9 during the fourth quarter of 2011,  the highest number recorded in the 20-year history of the index.  The HOI is the percentage of homes sold during the quarter affordable to a median-income family, based on standard underwriting criteria.  An HOI of 75.9 means that 75.9 percent of all new and existing homes sold in the fourth quarter were affordable to families earning the national median income of $64,200. 

New home construction, although improving recently, is still at a historically low level, suggesting that factors such as overly restrictive lending conditions remain a significant obstacle.

Youngstown-Warren-Boardman, OH-PA was the most affordable major housing market in the country during the fourth quarter, with 95.1 percent of all homes sold during the quarter were affordable to households earning the area’s median family income of $54,900.

Markets with Population 500K+ that were Most Affordable in 2011:Q4

  1.       Youngstown-Warren-Boardman, OH-PA

  2.       Lakeland-Winter Haven, FL

  2.       Modesto, CA

  4.       Harrisburg-Carlisle, PA

  5.       Toledo, OH

  6.       Akron, OH

  7.       Warren-Troy-Farmington Hills, MI

  8.       Grand Rapids-Wyoming, MI

  8.       Indianapolis-Carmel, IN

10.       Dayton, OH

For more information on the HOI, including complete history and details for every metro area covered, see www.nahb.org/hoi.



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