The Housing Affordability Index value in the United States plummeted in 2022, surpassing the historical record of 107.1 index points in 2006. In 2024, the housing affordability index measured 98.1 index points, making it the second-worst year for homebuyers since the start of the observation period. What does the Housing Affordability Index mean? The Housing Affordability Index uses data provided by the National Association of Realtors (NAR). It measures whether a family earning the national median income can afford the monthly mortgage payments on a median-priced existing single-family home. An index value of 100 means that a family has exactly enough income to qualify for a mortgage on a home. The higher the index value, the more affordable a house is to a family. Key factors that drive the real estate market Income, house prices, and mortgage rates are some of the most important factors influencing homebuyer sentiment. When incomes increase, consumer power also increases. The median household income in the United States declined in 2022, affecting affordability. Additionally, mortgage interest rates have soared, adding to the financial burden of homebuyers. The sales price of existing single-family homes in the U.S. has increased year-on-year since 2011 and reached 389,000 U.S. dollars in 2023.

The housing affordability measure illustrates the relationship between income and housing costs. A household that spends 30% or more of its collective monthly income to cover housing costs is considered to be “housing cost-burden[ed].”[1] Those spending between 30% and 49.9% of their monthly income are categorized as “moderately housing cost-burden[ed],” while those spending more than 50% are categorized as “severely housing cost-burden[ed].”[2]

How much a household spends on housing costs affects the household’s overall financial situation. More money spent on housing leaves less in the household budget for other needs, such as food, clothing, transportation, and medical care, as well as for incidental purchases and saving for the future.

The estimated housing costs as a percentage of household income are categorized by tenure: all households, those that own their housing unit, and those that rent their housing unit.

Throughout the period of analysis, the percentage of housing cost-burdened renter households in Champaign County was higher than the percentage of housing cost-burdened homeowner households in Champaign County. All three categories saw year-to-year fluctuations between 2005 and 2023, and none of the three show a consistent trend. However, all three categories were estimated to have a lower percentage of housing cost-burdened households in 2023 than in 2005.

Data on estimated housing costs as a percentage of monthly income was sourced from the U.S. Census Bureau’s American Community Survey (ACS) 1-Year Estimates, which are released annually.

As with any datasets that are estimates rather than exact counts, it is important to take into account the margins of error (listed in the column beside each figure) when drawing conclusions from the data.

Due to the impact of the COVID-19 pandemic, instead of providing the standard 1-year data products, the Census Bureau released experimental estimates from the 1-year data in 2020. This includes a limited number of data tables for the nation, states, and the District of Columbia. The Census Bureau states that the 2020 ACS 1-year experimental tables use an experimental estimation methodology and should not be compared with other ACS data. For these reasons, and because data is not available for Champaign County, no data for 2020 is included in this Indicator.

For interested data users, the 2020 ACS 1-Year Experimental data release includes a dataset on Housing Tenure.

[1] Schwarz, M. and E. Watson. (2008). Who can afford to live in a home?: A look at data from the 2006 American Community Survey. U.S. Census Bureau.

[2] Ibid.

Sources: U.S. Census Bureau; American Community Survey, 2023 American Community Survey 1-Year Estimates, Table B25106; generated by CCRPC staff; using data.census.gov; (17 October 2024).; U.S. Census Bureau; American Community Survey, 2022 American Community Survey 1-Year Estimates, Table B25106; generated by CCRPC staff; using data.census.gov; (22 September 2023).; U.S. Census Bureau; American Community Survey, 2021 American Community Survey 1-Year Estimates, Table B25106; generated by CCRPC staff; using data.census.gov; (30 September 2022).; U.S. Census Bureau; American Community Survey, 2019 American Community Survey 1-Year Estimates, Table B25106; generated by CCRPC staff; using data.census.gov; (10 June 2021).; U.S. Census Bureau; American Community Survey, 2018 American Community Survey 1-Year Estimates, Table B25106; generated by CCRPC staff; using data.census.gov; (10 June 2021).;U.S. Census Bureau; American Community Survey, 2017 American Community Survey 1-Year Estimates, Table B25106; generated by CCRPC staff; using American FactFinder; (13 September 2018).; U.S. Census Bureau; American Community Survey, 2016 American Community Survey 1-Year Estimates, Table B25106; generated by CCRPC staff; using American FactFinder; (14 September 2017).; U.S. Census Bureau; American Community Survey, 2015 American Community Survey 1-Year Estimates, Table B25106; generated by CCRPC staff; using American FactFinder; (19 September 2016).; U.S. Census Bureau; American Community Survey, 2014 American Community Survey 1-Year Estimates, Table B25106; generated by CCRPC staff; using American FactFinder; (16 March 2016).; U.S. Census Bureau; American Community Survey, 2013 American Community Survey 1-Year Estimates, Table B25106; generated by CCRPC staff; using American FactFinder; (16 March 2016).; U.S. Census Bureau; American Community Survey, 2012 American Community Survey 1-Year Estimates, Table B25106; generated by CCRPC staff; using American FactFinder; (16 March 2016).; U.S. Census Bureau; American Community Survey, 2011 American Community Survey 1-Year Estimates, Table B25106; generated by CCRPC staff; using American FactFinder; (16 March 2016).; U.S. Census Bureau; American Community Survey, 2010 American Community Survey 1-Year Estimates, Table B25106; generated by CCRPC staff; using American FactFinder; (16 March 2016).; U.S. Census Bureau; American Community Survey, 2009 American Community Survey 1-Year Estimates, Table B25106; generated by CCRPC staff; using American FactFinder; (16 March 2016).; U.S. Census Bureau; American Community Survey, 2008 American Community Survey 1-Year Estimates, Table B25106; generated by CCRPC staff; using American FactFinder; 16 March 2016).; U.S. Census Bureau; American Community Survey, 2007 American Community Survey 1-Year Estimates, Table B25106; generated by CCRPC staff; using American FactFinder; (16 March 2016).; U.S. Census Bureau; American Community Survey, 2006 American Community Survey 1-Year Estimates, Table B25106; generated by CCRPC staff; using American FactFinder; (16 March 2016).; U.S. Census Bureau; American Community Survey, 2005 American Community Survey 1-Year Estimates, Table B25106; generated by CCRPC staff; using American FactFinder; (16 March 2016).

United States Housing Affordability Index: Fixed data was reported at 146.900 NA in Oct 2018. This records a decrease from the previous number of 147.400 NA for Sep 2018. United States Housing Affordability Index: Fixed data is updated monthly, averaging 127.900 NA from Jan 1989 (Median) to Oct 2018, with 357 observations. The data reached an all-time high of 212.800 NA in Jan 2013 and a record low of 97.600 NA in May 1989. United States Housing Affordability Index: Fixed data remains active status in CEIC and is reported by National Association of Realtors. The data is categorized under Global Database’s United States – Table US.EB018: Housing Affordability Index.

United States Housing Affordability Index: Median Price data was reported at 260,500.000 USD in Sep 2018. This records a decrease from the previous number of 268,200.000 USD for Aug 2018. United States Housing Affordability Index: Median Price data is updated monthly, averaging 167,800.000 USD from Jan 1989 (Median) to Sep 2018, with 357 observations. The data reached an all-time high of 276,500.000 USD in Jun 2018 and a record low of 90,300.000 USD in Jan 1989. United States Housing Affordability Index: Median Price data remains active status in CEIC and is reported by National Association of Realtors. The data is categorized under Global Database’s United States – Table US.EB018: Housing Affordability Index.

This map uses a two-color thematic shading to emphasize where areas experience the least to the most affordable housing across the US. This web map is part of the How Affordable is the American Dream story map.

Esri’s Housing Affordability Index (HAI) is a powerful tool to analyze local real estate markets. Esri’s housing affordability index measures the financial ability of a typical household to purchase an existing home in an area. A HAI of 100 represents an area that on average has sufficient household income to qualify for a loan on a home valued at the median home price. An index greater than 100 suggests homes are easily afforded by the average area resident. A HAI less than 100 suggests that homes are less affordable. The housing affordability index is not applicable in areas with no households or in predominantly rental markets . Esri’s home value estimates cover owner-occupied homes only. For a full demographic analysis of US growth refer to Esri's Trending in 2017: The Selectivity of Growth.

The pop-up is configured to show the following 2017 demographics for each County and ZIP Code:

Total Households 2010-17 Annual Pop Change Median Age Percent Owner-Occupied Housing Units Median Household Income Median Home Value Housing Affordability Index Share of Income to Mortgage

United States Housing Affordability Index: Monthly Principal and Interest Payment data was reported at 1,092.000 USD in Oct 2018. This records an increase from the previous number of 1,085.000 USD for Sep 2018. United States Housing Affordability Index: Monthly Principal and Interest Payment data is updated monthly, averaging 783.000 USD from Jan 1989 (Median) to Oct 2018, with 358 observations. The data reached an all-time high of 1,207.000 USD in Jul 2006 and a record low of 568.000 USD in Feb 1994. United States Housing Affordability Index: Monthly Principal and Interest Payment data remains active status in CEIC and is reported by National Association of Realtors. The data is categorized under Global Database’s United States – Table US.EB018: Housing Affordability Index.

Graph and download economic data for Housing Affordability Index (Composite) (DISCONTINUED) (COMPHAI) from Apr 2018 to Apr 2019 about composite, housing, indexes, and USA.

Portugal, Canada, and the United States were the countries with the highest house price to income ratio in 2023. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 117.5 index points. The index measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. An index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. How have house prices worldwide changed since the COVID-19 pandemic? House prices started to rise gradually after the global financial crisis (2007–2008), but this trend accelerated with the pandemic. The countries with advanced economies, which usually have mature housing markets, experienced stronger growth than countries with emerging economies. Real house price growth (accounting for inflation) peaked in 2022 and has since lost some of the gain. Although, many countries experienced a decline in house prices, the global house price index shows that property prices in 2023 were still substantially higher than before COVID-19. Renting vs. buying In the past, house prices have grown faster than rents. However, the home affordability has been declining notably, with a direct impact on rental prices. As people struggle to buy a property of their own, they often turn to rental accommodation. This has resulted in a growing demand for rental apartments and soaring rental prices.

United States HAI: First Time: Starter Home Price data was reported at 226,900.000 USD in Sep 2018. This records a decrease from the previous number of 227,800.000 USD for Jun 2018. United States HAI: First Time: Starter Home Price data is updated quarterly, averaging 119,900.000 USD from Mar 1981 (Median) to Sep 2018, with 151 observations. The data reached an all-time high of 227,800.000 USD in Jun 2018 and a record low of 54,700.000 USD in Mar 1981. United States HAI: First Time: Starter Home Price data remains active status in CEIC and is reported by National Association of Realtors. The data is categorized under Global Database’s United States – Table US.EB019: Housing Affordability Index: First Time Buyers.

The primary reasons for purchasing a home in the United States in 2023 varied among home buyers. Approximately one in four homebuyers bought a home because they desired to have their own home. Having one's own home was mainly considered by millennial buyers during their home buying process.

Housing Index in the United States increased to 436.50 points in January from 435.80 points in December of 2024. This dataset provides the latest reported value for - United States House Price Index MoM Change - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

United States Housing Affordability Index: Mortgage Rate data was reported at 4.770 % in Sep 2018. This records a decrease from the previous number of 4.780 % for Aug 2018. United States Housing Affordability Index: Mortgage Rate data is updated monthly, averaging 6.470 % from Jan 1989 (Median) to Sep 2018, with 357 observations. The data reached an all-time high of 10.590 % in Jun 1989 and a record low of 3.430 % in Dec 2012. United States Housing Affordability Index: Mortgage Rate data remains active status in CEIC and is reported by National Association of Realtors. The data is categorized under Global Database’s United States – Table US.EB018: Housing Affordability Index.

The average sales price of new homes in the United States experienced a slight decrease in 2024, dropping to 512,2000 U.S. dollars from the peak of 521,500 U.S. dollars in 2022. This decline came after years of substantial price increases, with the average price surpassing 400,000 U.S. dollars for the first time in 2021. The recent cooling in the housing market reflects broader economic trends and changing consumer sentiment towards homeownership. Factors influencing home prices and affordability The rapid rise in home prices over the past few years has been driven by several factors, including historically low mortgage rates and increased demand during the COVID-19 pandemic. However, the market has since slowed down, with the number of home sales declining by over two million between 2021 and 2023. This decline can be attributed to rising mortgage rates and decreased affordability. The Housing Affordability Index hit a record low of 98.1 in 2023, indicating that the median-income family could no longer afford a median-priced home. Future outlook for the housing market Despite the recent cooling, experts forecast a potential recovery in the coming years. The Freddie Mac House Price Index showed a growth of 6.5 percent in 2023, which is still above the long-term average of 4.4 percent since 1990. However, homebuyer sentiment remains low across all age groups, with people aged 45 to 64 expressing the most pessimistic outlook. The median sales price of existing homes is expected to increase slightly until 2025, suggesting that affordability challenges may persist in the near future.

United States HAI: First Time: 1st Time Buyer Index data was reported at 94.400 NA in Sep 2018. This records an increase from the previous number of 94.100 NA for Jun 2018. United States HAI: First Time: 1st Time Buyer Index data is updated quarterly, averaging 83.900 NA from Mar 1981 (Median) to Sep 2018, with 151 observations. The data reached an all-time high of 136.700 NA in Mar 2012 and a record low of 47.700 NA in Sep 1981. United States HAI: First Time: 1st Time Buyer Index data remains active status in CEIC and is reported by National Association of Realtors. The data is categorized under Global Database’s United States – Table US.EB019: Housing Affordability Index: First Time Buyers.

This table contains data on the percent of households paying more than 30% (or 50%) of monthly household income towards housing costs for California, its regions, counties, cities/towns, and census tracts. Data is from the U.S. Department of Housing and Urban Development (HUD), Consolidated Planning Comprehensive Housing Affordability Strategy (CHAS) and the U.S. Census Bureau, American Community Survey (ACS). The table is part of a series of indicators in the [Healthy Communities Data and Indicators Project of the Office of Health Equity] Affordable, quality housing is central to health, conferring protection from the environment and supporting family life. Housing costs—typically the largest, single expense in a family's budget—also impact decisions that affect health. As housing consumes larger proportions of household income, families have less income for nutrition, health care, transportation, education, etc. Severe cost burdens may induce poverty—which is associated with developmental and behavioral problems in children and accelerated cognitive and physical decline in adults. Low-income families and minority communities are disproportionately affected by the lack of affordable, quality housing. More information about the data table and a data dictionary can be found in the Attachments.

The number of home sales in the United States peaked in 2021 at almost seven million after steadily rising since 2018. Nevertheless, the market contracted in the following year, with transaction volumes falling to 4.8 million. Home sales remained muted in 2024, with a mild increase expected in 2025 and 2026. A major factor driving this trend is the unprecedented increase in mortgage interest rates due to high inflation. How have U.S. home prices developed over time? The average sales price of new homes has also been rising since 2011. Buyer confidence seems to have recovered after the property crash, which has increased demand for homes and also the prices sellers are demanding for homes. At the same time, the affordability of U.S. homes has decreased. Both the number of existing and newly built homes sold has declined since the housing market boom during the coronavirus pandemic. Challenges in housing supply The number of housing units in the U.S. rose steadily between 1975 and 2005 but has remained fairly stable since then. Construction increased notably in the 1990s and early 2000s, with the number of construction starts steadily rising, before plummeting amid the infamous housing market crash. Housing starts slowly started to pick up in 2011, mirroring the economic recovery. In 2022, the supply of newly built homes plummeted again, as supply chain challenges following the COVID-19 pandemic and tariffs on essential construction materials such as steel and lumber led to prices soaring.

United States HAI: First Time: 10% Down data was reported at 22,690.000 USD in Sep 2018. This records a decrease from the previous number of 22,780.000 USD for Jun 2018. United States HAI: First Time: 10% Down data is updated quarterly, averaging 11,990.000 USD from Mar 1981 (Median) to Sep 2018, with 151 observations. The data reached an all-time high of 22,780.000 USD in Jun 2018 and a record low of 5,470.000 USD in Mar 1981. United States HAI: First Time: 10% Down data remains active status in CEIC and is reported by National Association of Realtors. The data is categorized under Global Database’s United States – Table US.EB019: Housing Affordability Index: First Time Buyers.

United States HAI: First Time: Prime 1st Time Median Income data was reported at 49,795.000 USD in Sep 2018. This records an increase from the previous number of 49,403.000 USD for Jun 2018. United States HAI: First Time: Prime 1st Time Median Income data is updated quarterly, averaging 32,416.000 USD from Mar 1981 (Median) to Sep 2018, with 151 observations. The data reached an all-time high of 49,795.000 USD in Sep 2018 and a record low of 15,294.000 USD in Mar 1981. United States HAI: First Time: Prime 1st Time Median Income data remains active status in CEIC and is reported by National Association of Realtors. The data is categorized under Global Database’s United States – Table US.EB019: Housing Affordability Index: First Time Buyers.

This map uses an archive of Version 1.0 of the CEJST data as a fully functional GIS layer. See an archive of the latest version of the CEJST tool using Version 2.0 of the data released in December 2024 here.This map assesses and identifies communities that are Housing Disadvantaged according to Justice40 Initiative criteria. "Communities are identified as disadvantaged if they are in census tracts that:Experienced historic underinvestment OR are at or above the 90th percentile for the housing cost OR lack of green space OR lack of indoor plumbing OR lead paintAND are at or above the 65th percentile for low income"Census tracts in the U.S. and its territories that meet the criteria are shaded in blue colors. Suitable for dashboards, apps, stories, and grant applications.Details of the assessment are provided in the popup for every census tract in the United States and its territories American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands. This map uses 2010 census tracts from Version 1.0 of the source data downloaded November 22, 2022.Use this map to help plan for grant applications, to perform spatial analysis, and to create informative dashboards and web applications.From the source:This data "highlights disadvantaged census tracts across all 50 states, the District of Columbia, and the U.S. territories. Communities are considered disadvantaged:If they are in census tracts that meet the thresholds for at least one of the tool’s categories of burden, orIf they are on land within the boundaries of Federally Recognized TribesCategories of BurdensThe tool uses datasets as indicators of burdens. The burdens are organized into categories. A community is highlighted as disadvantaged on the CEJST map if it is in a census tract that is (1) at or above the threshold for one or more environmental, climate, or other burdens, and (2) at or above the threshold for an associated socioeconomic burden.In addition, a census tract that is completely surrounded by disadvantaged communities and is at or above the 50% percentile for low income is also considered disadvantaged.Census tracts are small units of geography. Census tract boundaries for statistical areas are determined by the U.S. Census Bureau once every ten years. The tool utilizes the census tract boundaries from 2010. This was chosen because many of the data sources in the tool currently use the 2010 census boundaries."PurposeThe goal of the Justice40 Initiative is to provide 40 percent of the overall benefits of certain Federal investments in [eight] key areas to disadvantaged communities. These [eight] key areas are: climate change, clean energy and energy efficiency, clean transit, affordable and sustainable housing, training and workforce development, the remediation and reduction of legacy pollution, [health burdens] and the development of critical clean water infrastructure." Source: Climate and Economic Justice Screening tool"Sec. 219. Policy. To secure an equitable economic future, the United States must ensure that environmental and economic justice are key considerations in how we govern. That means investing and building a clean energy economy that creates well‑paying union jobs, turning disadvantaged communities — historically marginalized and overburdened — into healthy, thriving communities, and undertaking robust actions to mitigate climate change while preparing for the impacts of climate change across rural, urban, and Tribal areas. Agencies shall make achieving environmental justice part of their missions by developing programs, policies, and activities to address the disproportionately high and adverse human health, environmental, climate-related and other cumulative impacts on disadvantaged communities, as well as the accompanying economic challenges of such impacts. It is therefore the policy of my Administration to secure environmental justice and spur economic opportunity for disadvantaged communities that have been historically marginalized and overburdened by pollution and underinvestment in housing, transportation, water and wastewater infrastructure, and health care." Source: Executive Order on Tackling the Climate Crisis at Home and AbroadUse of this Data"The pilot identifies 21 priority programs to immediately begin enhancing benefits for disadvantaged communities. These priority programs will provide a blueprint for other agencies to help inform their work to implement the Justice40 Initiative across government." Source: The Path to Achieving Justice 40

VITAL SIGNS INDICATOR Home Prices (EC7)

FULL MEASURE NAME Home Prices

LAST UPDATED August 2019

DESCRIPTION Home prices refer to the cost of purchasing one’s own house or condominium. While a significant share of residents may choose to rent, home prices represent a primary driver of housing affordability in a given region, county or city.

DATA SOURCE Zillow Median Sale Price (1997-2018) http://www.zillow.com/research/data/

Bureau of Labor Statistics: Consumer Price Index All Urban Consumers Data Table (1997-2018; specific to each metro area) http://data.bls.gov

CONTACT INFORMATION vitalsigns.info@bayareametro.gov

METHODOLOGY NOTES (across all datasets for this indicator) Median housing price estimates for the region, counties, cities, and zip code come from analysis of individual home sales by Zillow. The median sale price is the price separating the higher half of the sales from the lower half. In other words, 50 percent of home sales are below or above the median value. Zillow defines all homes as single-family residential, condominium, and co-operative homes with a county record. Single-family residences are detached, which means the home is an individual structure with its own lot. Condominiums are units that you own in a multi-unit complex, such as an apartment building. Co-operative homes are slightly different from condominiums where the homeowners own shares in the corporation that owns the building, not the actual units themselves.

For metropolitan area comparison values, the Bay Area metro area’s median home sale price is the population-weighted average of the nine counties’ median home prices. Home sales prices are not reliably available for Houston, because Texas is a non-disclosure state. For more information on non-disclosure states, see: http://www.zillow.com/blog/chronicles-of-data-collection-ii-non-disclosure-states-3783/

Inflation-adjusted data are presented to illustrate how home prices have grown relative to overall price increases; that said, the use of the Consumer Price Index does create some challenges given the fact that housing represents a major chunk of consumer goods bundle used to calculate CPI. This reflects a methodological tradeoff between precision and accuracy and is a common concern when working with any commodity that is a major component of CPI itself.