Affordability Increases Per Data From NAR
The National Association of Realtors’ (NAR) Housing Affordability Index reached a record high in January of this year. NAR calculates the index monthly and takes data from median home price, median family income, and average mortgage interest rate. It measures the affordability of a median-priced, existing single-family home by a median-income-earning family. The higher the index score, the greater the affordability is. Previous index computations were 169.4 in 2009, 174 in 2010, and 184.5 in 2011. In January the index was over 200. This is the first time since the index’s inception in 1970 that it has hit or passed 200.