affordability index

Definition

A measure of the financial ability of U.S. families to buy a house. 100 means that families earning the national median income have just the amount of money needed to qualify for a mortgage on a median-priced home; higher than 100 means they have more than enough and lower than 100 means they have less than enough.

Use affordability index in a sentence

We spent the day studying the available data on the affordability index before making some pricing suggestions regarding the property value.

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Since the housing market crash in the early 2000's the affordability index for home has declined and it is now more difficult for those meeting the median income to purchase a home.

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