The Housing Affordability Index value in the United States plummeted in 2022, surpassing the historical record of ***** index points in 2006. In 2024, the housing affordability index measured **** 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 ******* U.S. dollars in 2023.

View yearly updates and historical trends for US Fixed Housing Affordability Index. from United States. Source: National Association of Realtors. Track ec…

Graph and download economic data for Housing Affordability Index (Fixed) (FIXHAI) from Jul 2024 to Jul 2025 about fixed, housing, indexes, and USA.

Portugal, Canada, and the United States were the countries with the highest house price to income ratio in 2024. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 116.2 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.

First launched by the U.S. Department of Housing and Urban Development (HUD) and Department of Transportation (DOT) in November 2013, the Location Affordability Index (LAI) provides ubiquitous, standardized household housing and transportation cost estimates for all 50 states and the District of Columbia. Because what is affordable is different for everyone, users can choose among eight household profiles—which vary by household income, size, and number of commuters—and see the impact of the built environment on affordability in a given location while holding household demographics constant.

Version 3 updates the constituent data sets with 2012-2016 American Community Survey data and makes several methodological tweaks, most notably moving to modeling at the Census tract level rather at the block group. As with Version 2, the inputs to the simultaneous equation model (SEM) include six endogenous variables—housing costs, car ownership, and transit usage for both owners and renters—and 18 exogenous variables, with vehicle miles traveled still modeled separately due to data limitations.To learn more about the Location Affordability Index (v.3) visit: https://www.hudexchange.info/programs/location-affordability-index/, for questions about the spatial attribution of this dataset, please reach out to us at GISHelpdesk@hud.gov. Date of Coverage: 2012-2016 Data Dictionary: DD_Location Affordability Indev v.3.0LAI Version 3 Data and MethodologyLAI Version 3 Technical Documentation

Housing Index in the United States decreased to 433.80 points in June from 434.60 points in May of 2025. 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.

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

The house price-to-income ratio in the United States has reached concerning levels, with the index hitting ***** in the second quarter of 2025. This indicates that house prices have outpaced income growth by *****percent since 2015, highlighting a growing affordability crisis in the housing market. The widening gap between home prices and wages is putting homeownership out of reach for many Americans, particularly as real wages have remained stagnant. Rising home prices and stagnant wages While average annual real wages in the United States have increased slightly since 2014, home prices have soared. The median sales price of existing single-family homes reached a record-high in 2024, representing a substantial increase over the past five years. This disparity between wage growth and home price appreciation has led to a significant decrease in housing affordability across the country. Affordability challenges in the U.S. housing market The U.S. Housing Affordability Index, which measures whether a family earning the median income can afford a median-priced home, plummeted in 2024, marking the second-worst year for homebuyers since records began. This decline in affordability is reflected in homebuyer sentiment, with homebuyer sentiment plummeting.

In many metros in the United States, the median household income was insufficient to qualify for the median-priced home. Among the ** largest metros in the U.S., San Jose-Sunnyvale-Santa Clara, CA was the least affordable one in 2022, with the housing affordability index at **** index points. This means that the median household income, when accounting for monthly housing expenses, was less than ** percent of the necessary income to qualify for a mortgage. An index value over 100, on the other hand, shows that the median income is sufficient for a mortgage. Metros, such as Cleveland-Elyria, OH, and St. Louis, MO-IL had a median household income much higher than the income needed to buy the median-priced home.

View quarterly updates and historical trends for US First Time Buyer Housing Affordability Index. from United States. Source: National Association of Real…

View quarterly updates and historical trends for US Composite Housing Affordability Index. from United States. Source: National Association of Realtors. T…

The homebuyer sentiment in the United States worsened substantially in 2021 and remained low for all age groups until 2025. As of January 2025, the homebuyer outlook was the worst for people in the age group 35 to 44, with a net homebuyer sentiment of negative 58. This means that the share of respondents who thought it was a bad time to buy a home outweighed the share of respondents who said the contrary by 58 percent. The decline in sentiment is correlated with the falling homeowner affordability. In 2023, the U.S. homeowner affordability index fell to the lowest level on record.

The homebuyer sentiment in the United States worsened substantially in 2021 and remained negative until August 2025. As of August 2025, the net homebuyer sentiment measured negative **. This means that the share of respondents who thought it was a bad time to buy a home outweighed the share of respondents who said the contrary by 44 percent. The decline in sentiment is correlated with the falling homeowner affordability. In 2023, the U.S. homeowner affordability index fell to the lowest level on record.

The FHFA House Price Index (FHFA HPI®) is the nation’s only collection of public, freely available house price indexes that measure changes in single-family home values based on data from all 50 states and over 400 American cities that extend back to the mid-1970s. The FHFA HPI incorporates tens of millions of home sales and offers insights about house price fluctuations at the national, census division, state, metro area, county, ZIP code, and census tract levels. FHFA uses a fully transparent methodology based upon a weighted, repeat-sales statistical technique to analyze house price transaction data. ​ What does the FHFA HPI represent? The FHFA HPI is a broad measure of the movement of single-family house prices. The FHFA HPI is a weighted, repeat-sales index, meaning that it measures average price changes in repeat sales or refinancings on the same properties. This information is obtained by reviewing repeat mortgage transactions on single-family properties whose mortgages have been purchased or securitized by Fannie Mae or Freddie Mac since January 1975.

The FHFA HPI serves as a timely, accurate indicator of house price trends at various geographic levels. Because of the breadth of the sample, it provides more information than is available in other house price indexes. It also provides housing economists with an improved analytical tool that is useful for estimating changes in the rates of mortgage defaults, prepayments and housing affordability in specific geographic areas.

U.S. Federal Housing Finance Agency, All-Transactions House Price Index for Connecticut [CTSTHPI], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/CTSTHPI, August 2, 2023.

View yearly updates and historical trends for US First Time Buyer Housing Affordability Index. from United States. Source: National Association of Realtor…

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.

The number of new houses sold in the United States took a big hit during the financial crisis, dropping from a high of around 1.3 million houses sold in 2005 to a low of 306 thousand homes sold in 2011 – around a 76 percent decrease. While the economy has largely recovered since the crisis, consumers remained hesitant when it comes to buying homes. In 2020, demand for housing surged and house sales volumes spiked to 882,000. Housing construction remains suppressed One of the main challenges in the U.S. housing market is the insufficient number of new homes built. During the financial crisis, construction slowed dramatically, and has still struggled to recover. Construction costs, on the other hand, have risen notably, making homeownership increasingly pricier. House prices on the rise Unsurprisingly, the median sales price of new homes has risen substantially. In 2024, the U.S. Case Shiller National Home Price Index, reached 321 index points, suggesting the price of a home tripled since 2000, the base year of the index.

Graph and download economic data for All-Transactions House Price Index for Florida (FLSTHPI) from Q1 1975 to Q2 2025 about appraisers, FL, HPI, housing, price index, indexes, price, and USA.

This statistic presents the housing affordability index among Millennials in the United States as of June 2015, by city. The index presents how much money the Millennials need to earn per year in order to be able to buy a house in a given city, basing on the difference between house prices and the Millennials' earnings in the given area. The Millennials who want to buy a house in San Jose need to earn 80,162 U.S. dollars more per year to afford an average house mortgage.

View yearly updates and historical trends for Reno, NV Housing Affordability Index. Source: National Association of Realtors. Track economic data with YCh…