Utah’s Housing Affordability Index Reaches Record High

Housing Affordability IndexWhile some would have you believe that the sky is falling when it comes to real estate, Chicken Little is actually craning his neck because the housing affordability index is so high!

Since 1970 the National Association of REALTORS has been tracking this index. Earlier this year we reached the all time record high for this index! As of September, 2011, Utah’s index is at 168!

Housing Affordability Index 1970 - 2011The index is designed to show the relationship between the median income and the median home price, it also takes into consideration the current interest rate. To put it more simply the index represents the percentage of the median income needed to purchase a median price home. In other words, in Utah right now, a family earning a median income makes 168% of what is required to purchase a median priced home.

housing affordabilityWhy is this important? Well first off it’s good news in the sense that more people can afford to be homeowners. This is especially important when you consider that current studies are showing that it’s more expensive to rent than to own! Secondly, if a median income family wants to buy a median priced home they will be spending less per month on that home than they would have just a few short years ago!

With decreasing inventories, home prices stabilizing, and interest rates at historic lows, coupled with this record high Housing Affordability Index; it really is a great time to buy a home!

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About utahREpro

Chris is the managing broker for Prudential Utah Elite Real Estate in American Fork, Utah. His passions include spending time with his family, Real Estate, Social Media, traveling, reading, movies, golf, dirt biking and so much more. Chris is a graduate of the National Association of REALTORS (NAR) Leadership Academy as well as the Utah Association of REALTORS (UAR) Leadership Academy. He has served in many capacities in the real estate industry at the national, state and local levels, including: 2013 Treasurer of the Utah Association of REALTORS 2011 President of the Utah County Association of REALTORS (UCAR) 2011 REALTOR of the Year – UCAR NAR Federal Political Coordinator assigned to US Senator Mike Lee 2011 NAR Strategic Planning Committee 2010 – 2013 NAR Public Policy Coordinating Committee 2011 Dean of the LeadershipUAR Program Chris has been a licensed REALTOR in the State of Utah since 2004. He has been recognized both nationally and locally by Prudential and was inducted into their Hall of Fame in 2010.
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