CalculateRealEstateROI

Market Analysis

Affordability Index

Ratio of median income to income required to qualify for the median-priced home.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

100 = median household exactly affords the median home. <100 = unaffordable.

Examples

  • California affordability index ~80 vs national ~100.

Common mistakes

  • Treating affordability as a forecast rather than a current condition.

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