Tag Archives: HOI

Read of the Day: Nationwide Housing Affordability Improves in Third Quarter

Nationwide Housing Affordability Improves in Third Quarter

by Rose Quint — Eye on Housing

Lower interest rates helped make homes more affordable to median-income families even as house prices continued to inch up in metro areas across the country in the third quarter of 2012. The NAHB/Wells Fargo Housing Opportunity Index (HOI) rose to 74.1 in the third quarter, up slightly from 73.8 in the previous quarter.

The HOI is the share of new and existing homes sold in a quarter affordable to a family earning the median income.  An HOI of 74.1 means that 74.1 percent of all homes sold during the third quarter were affordable to families earning the national median income ($65,000).

Topping the affordability list for the first time in the HOI’s history, Ogden-Clearfield, Utah, was named the most affordable major housing market (population > 500,000) in the country in the third quarter. There, 93.2 percent of all new and existing homes sold between July and September of this year were affordable to families earning the area’s median household income of $71,500.

Among smaller housing markets, Fairbanks, Alaska, retained its standing at the top of the affordability chart with an incredible 99.4 percent of all homes sold there in the third quarter being affordable to families earning the area’s median income of $92,900.

Meanwhile, New York-White Plains-Wayne, N.Y.-N.J. retained the title of the least affordable major housing market in the country for an 18thconsecutive quarter, with just 28.5 percent of homes sold there being affordable to families earning the area’s median income of $68,300.

The least affordable small housing market in the third quarter was Santa Cruz-Watsonville, Calif., with just 44.4 percent of homes sold being within reach of families earning the median income of $87,000.

For more information on the HOI, including history and details for every metro area covered, please see www.nahb.org/hoi.

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Rising Home Prices Push Affordability Slightly Lower In Second Quarter

Rising Home Prices Push Affordability Slightly Lower In Second Quarter

by Rose Quint — Eye on Housing

The  NAHB/Wells Fargo Housing Opportunity Index (HOI) fell slightly in the 2nd quarter of 2012, down to 73.8, from the all-time record high of 77.5 recorded in the first quarter of the year.  Firming home prices in most metro areas contributed to the small decline in affordability.

The HOI is the share of new and existing homes sold in a quarter affordable to a family earning the median income.  An HOI of 73.8 means that 73.8 percent of all homes sold during the second quarter were affordable to families earning the national median income ($65,000).

The most affordable major housing market (population > 500,000) in this year’s second quarter was Youngstown-Warren-Boardman, Ohio-Pa., where 93.4 percent of homes sold during the period were affordable to households earning the area’s median family income of $55,700.

Among smaller housing markets, Fairbanks, Alaska topped the affordability chart with 98.7 percent of homes sold during the second quarter being affordable to families earning the area’s median income of $92,900.

Meanwhile, New York- White Plains-Wayne, N.Y.-N.J. retained the title of the least affordable major housing market in the country for a 17th consecutive quarter, with just 29.4 percent of homes sold there being affordable to families earning the area’s median income of $68,300 as of the second quarter.

Ocean City, N.J., remained the least affordable smaller housing market in the second quarter, with just 43.8 percent of homes sold in the second quarter affordable to families earning the median income of $71,100.

For more information on the HOI, including history and details for every metro area covered, please see www.nahb.org/hoi.

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Housing Affordability Hits Another All-Time High

Housing Affordability Hits Another All-Time High

by Paul Emrath — Eye on Housing

The National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI), increased to 77.5 in the first quarter of 2012, beating the previous record of 75.9 set in the final quarter of 2011.

The HOI is the percentage of homes sold during the quarter affordable to a median-income family, based on standard underwriting criteria.  An HOI of 77.7 thus means that 77.7 percent of all new and existing homes sold during the first quarter were affordable to families earning the national median income ($65,000).

Although new home construction has been improving slowly recently, it remains at a historically low level despite the record affordability, suggesting that factors such as overly restrictive lending conditions remain a significant obstacle for many potential buyers.

Among the country’s major housing markets in the first quarter, Indianapolis-Carmel in Indiana ranked as the most affordable, with 95.8 percent of homes sold during the quarter affordable to households earning the area’s median family income of $66,900.

Most Affordable Metro Areas with Population 500K+:

  1. Indianapolis-Carmel, IN
  2. Dayton, OH
  3. Lakeland-Winter Haven, FL
  4. Modesto, CA
  5. Grand Rapids-Wyoming, MI
  6. Buffalo-Niagara Falls, NY
  7. Ogden-Clearfield, UT
  8. Syracuse, NY
  9. Akron, OH
  10. Cincinnati-Middletown, OH-KY-IN

For more information on the HOI, including complete history and details for every metro area covered, see http://www.nahb.org/hoi.

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HOI Indicates Affordability at All-Time High

by Paul Emrath —Eye on Housing

The National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) rose to 75.9 during the fourth quarter of 2011,  the highest number recorded in the 20-year history of the index.  The HOI is the percentage of homes sold during the quarter affordable to a median-income family, based on standard underwriting criteria.  An HOI of 75.9 means that 75.9 percent of all new and existing homes sold in the fourth quarter were affordable to families earning the national median income of $64,200. 

New home construction, although improving recently, is still at a historically low level, suggesting that factors such as overly restrictive lending conditions remain a significant obstacle.

Youngstown-Warren-Boardman, OH-PA was the most affordable major housing market in the country during the fourth quarter, with 95.1 percent of all homes sold during the quarter were affordable to households earning the area’s median family income of $54,900.

Markets with Population 500K+ that were Most Affordable in 2011:Q4

1.       Youngstown-Warren-Boardman, OH-PA

2.       Lakeland-Winter Haven, FL

2.       Modesto, CA

4.       Harrisburg-Carlisle, PA

5.       Toledo, OH

6.       Akron, OH

7.       Warren-Troy-Farmington Hills, MI

8.       Grand Rapids-Wyoming, MI

8.       Indianapolis-Carmel, IN

10.       Dayton, OH

For more information on the HOI, including complete history and details for every metro area covered, see www.nahb.org/hoi.

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Housing Affordability Continues Near Record High

Housing Affordability Continues Near Record High

by Paul Emrath — Eye on Housing

The NAHB/Wells Fargo Housing Opportunity Index (HOI) for the third quarter of 2011 shows that, nationwide, housing affordability continues to hover near its highest level in the more than 20 years it has been measured

The HOI indicated that a near-record 72.9 percent of all new and existing homes sold in the third quarter of the year were affordable to families earning the national median income of $64,200. The affordability measure rose slightly from the 72.6 percent set last quarter and has remained above the 70 percent threshold for 11 consecutive quarters. The HOI rarely rose above 60 percent prior to this period.

Lakeland-Winter Haven, Fla., was the most affordable major housing market in the country during the third quarter of the year. In Lakeland, 92.5 percent of all homes sold were affordable to households earning the area’s median family income of $53,800.

Other major metro housing markets ranking near the top of the index were Toledo, Ohio; Youngstown-Warren-Boardman, Ohio-Pa.; Indianapolis-Carmel, Ind.; and Ogden-Clearfield, Utah, respectively.

New York-White Plains-Wayne, N.Y.-N.J., led the nation as the least affordable major housing market during the third quarter of 2011. In New York, 23.3 percent of all homes sold during the quarter were affordable to those earning the area’s median income of $67,400. The New York metropolitan division has held the least affordable market position for the last 14 quarters.

Other major metro areas near the bottom of the affordability index included San Francisco-San Mateo-Redwood City, Calif.; Honolulu; Santa Ana-Anaheim-Irvine, Calif.; and Los Angeles-Long Beach-Glendale, Calif., respectively.

For more information on the HOI, including complete history and details for every metro area covered, see www.nahb.org/hoi

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Housing Affordability Near Record Levels According to NAHB/Wells Fargo Index

Housing Affordability Near Record Levels According to NAHB/WellsFargo Index

 

 

by Robert Dietz

Nationwide housing affordability is hovering near record levels, according to the latest NAHB/Wells Fargo Housing Opportunity Index (HOI) data released this week. The HOI indicated that 72.6 percent of all new and existing homes sold in the second quarter of the year were affordable to families earning the national median income of $64,200. The affordability measure dipped slightly from the all-time high of 74.6 percent set last quarter but remained above the 70 percent threshold initially achieved in the first quarter of 2009.

Youngstown, Ohio was the most affordable major housing market during the second quarter. In Youngstown, 93.7 percent of all homes sold were affordable to households earning the area’s median family income.   Also ranking near the top of the most affordable major markets were Syracuse, N.Y.; Indianapolis, Ind.; Dayton, Ohio; and Lakeland-Winter Haven, Fla.

New York-White Plains-Wayne, N.Y.-N.J., led the nation as the least affordable major housing market during the second quarter of 2011. In New York, 25.2 percent of all homes sold during the quarter were affordable to those earning the area’s median income of $67,400. This marks the 13th consecutive quarter that the New York metropolitan division has held this position.

Other major metro areas near the bottom of the affordability index included San Francisco-San Mateo-Redwood City, Calif.; Santa Ana-Anaheim-Irvine, Calif.; Los Angeles-Long Beach-Glendale, Calif.; and Honolulu, respectively.

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