The Affordability of Housing Reaches a 20-Year Peak
We all know that the housing market has had some challenges in the last couple of years. As the real estate market starts to even out, housing affordability is higher than recorded in over twenty years. This means middle income families can comfortably afford to purchase their own home. The National Association of Home Builder/Wells Fargo records a Housing Opportunity Index (HOI) every year. This index compares the median income of families in a specified area compared to the income needed to comfortably afford a home purchase. This year they report, “73.9 percent of all new and existing homes sold in the fourth quarter of 2010 were affordable to families earning the national median income of $64,400.” This statistic is significant because it is the highest percentage on record since they started collecting this data in 1991. How does this compare to the Tampa Bay market? The HOI in Tampa is 78.2% in the fourth quarter of 2010, with a median income of $59,400. The Tampa real estat...