Investopedia Home Affordability Index

The Investopedia Home Affordability Index displays the the ratio of median housing costs to median income as an index. An index value of 1.00 is equal to a housing cost ratio of 30%, which is considered affordable by the federal government. Index values below 1.00 indicate that housing costs are unaffordable, at least for median income homeowners.

We calculate median monthly income using the Census Bureau's 2023 American Community Survey, adjusted for wage inflation according to the Bureau of Labor Statistics monthly wage report. Median home price is from the Zillow Home Value Index. Monthly housing cost includes mortgage principal, interest, taxes, and insurance, assuming a down payment of 20%.
Chart: Lars Peterson / Investopedia