CalculatedRisk Newsletter

CalculatedRisk Newsletter

Share this post

CalculatedRisk Newsletter
CalculatedRisk Newsletter
Housing: A Look at "Affordability" Indexes
Copy link
Facebook
Email
Notes
More

Housing: A Look at "Affordability" Indexes

CalculatedRisk by Bill McBride's avatar
CalculatedRisk by Bill McBride
Sep 06, 2021
∙ Paid
11

Share this post

CalculatedRisk Newsletter
CalculatedRisk Newsletter
Housing: A Look at "Affordability" Indexes
Copy link
Facebook
Email
Notes
More
1
Share

The measures I typically use to compare house prices over time are 1) real house prices (nominal house prices adjusted for inflation), 2) a Price-to-rent ratio, and 3) House prices to median income.

Another measure that is commonly used is an “affordability index”. These indexes calculate affordability based on income and mortgage rates. I’ll prese…

Keep reading with a 7-day free trial

Subscribe to CalculatedRisk Newsletter to keep reading this post and get 7 days of free access to the full post archives.

Already a paid subscriber? Sign in
© 2025 CalculatedRisk
Privacy ∙ Terms ∙ Collection notice
Start writingGet the app
Substack is the home for great culture

Share

Copy link
Facebook
Email
Notes
More