Housing Affordability Hits Another All-Time High

The National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI), increased to 77.5 in the first quarter of 2012, beating the previous record of 75.9 set in the final quarter of 2011.

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 77.7 thus means that 77.7 percent of all new and existing homes sold during the first quarter were affordable to families earning the national median income ($65,000).

Although new home construction has been improving slowly recently, it remains at a historically low level despite the record affordability, suggesting that factors such as overly restrictive lending conditions remain a significant obstacle for many potential buyers.

Among the country’s major housing markets in the first quarter, Indianapolis-Carmel in Indiana ranked as the most affordable, with 95.8 percent of homes sold during the quarter affordable to households earning the area’s median family income of $66,900.

Most Affordable Metro Areas with Population 500K+:

  1. Indianapolis-Carmel, IN
  2. Dayton, OH
  3. Lakeland-Winter Haven, FL
  4. Modesto, CA
  5. Grand Rapids-Wyoming, MI
  6. Buffalo-Niagara Falls, NY
  7. Ogden-Clearfield, UT
  8. Syracuse, NY
  9. Akron, OH
  10. Cincinnati-Middletown, OH-KY-IN

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

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6 Responses to Housing Affordability Hits Another All-Time High

  1. [...] Very very affordable! The low mortgage rates combined with the super home prices is making it a very attractive time to buy a home. Yeah it might be tough for people with iffy credit to get a mortgage but it does not change the fact that conditions are great for home buying today. Is it the right time for you to buy a home? I sure hope so since the National Association of Home Builders just said that Housing Affordability Hits Another All-Time High [...]

  2. tinagleisner says:

    Nice to see some good news although you’re right, the banks seem to be favoring the best customers and giving others an incredibly difficult time. One of my employees wants to make an offer on a house but her boyfriend has no credit – just a 4 yr degree from University of NH, and technical job for 2 yrs paying a nice salary … so he’s being penalized for not getting a credit card?

  3. [...] The NAHB/Wells Fargo Housing Opportunity Index reached an all-time high for the first quarter of 201…. At a level of 77.7, the index indicates that more than three-quarters of all existing and new homes for sale are affordable for an average family’s income. However, it is worth noting that home buyer access to credit continues to hold back housing demand, despite historic affordability conditions. [...]

  4. [...] The NAHB/Wells Fargo Housing Opportunity Index reached an all-time high for the first quarter of 201…. At a level of 77.7, the index indicates that more than three-quarters of all existing and new homes for sale are affordable for an average family’s income. However, it is worth noting that home buyer access to credit continues to hold back housing demand, despite historic affordability conditions. [...]

  5. [...] NAHB/Wells Fargo Housing Opportunity Index, a measure of home buying affordability, is at an all time [...]

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