Affordability of Homes

Definition

Median housing value divided by median family income, 2011.

Description

This measure estimates housing affordability relative to wages. In areas where housing values are high relative to wages, many prospective homeowners are priced out of the market, prohibiting them from building home equity. Whereas high housing values benefit those who already own their homes, a high ratio of housing value to wages typically makes it less likely that someone can afford to purchase a home. 

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Affordability of Homes

State	Ratio of Median Housing Value to Median Household Income	Rank
United States	3.4
Alabama	3.0	15
Alaska	3.5	30
Arizona	3.3	23
Arkansas	2.7	12
California	6.2	49
Colorado	4.2	41
Connecticut	4.2	42
Delaware	4.0	37
District of Columbia	6.7	50
Florida	3.4	28
Georgia	3.2	18
Hawaii	7.9	51
Idaho	3.7	31
Illinois	3.4	27
Indiana	2.6	9
Iowa	2.5	2
Kansas	2.6	8
Kentucky	2.9	14
Louisiana	3.3	26
Maine	3.7	33
Maryland	4.1	39
Massachusetts	5.2	48
Michigan	2.6	4
Minnesota	3.2	20
Mississippi	2.7	10
Missouri	3.0	16
Montana	4.2	40
Nebraska	2.5	3
Nevada	3.2	21
New Hampshire	3.8	35
New Jersey	4.8	45
New Mexico	3.8	34
New York	5.2	47
North Carolina	3.5	29
North Dakota	2.5	1
Ohio	2.8	13
Oklahoma	2.6	7
Oregon	5.0	46
Pennsylvania	3.3	22
Rhode Island	4.6	44
South Carolina	3.2	19
South Dakota	2.7	11
Tennessee	3.3	25
Texas	2.6	6
Utah	3.7	32
Vermont	4.0	38
Virginia	3.9	36
Washington	4.5	43
West Virginia	2.6	5
Wisconsin	3.3	24
Wyoming	3.2	17

Source

2011 American Community Survey. Washington, DC: U.S. Department of Commerce, Census Bureau, 2012.