Housing Affordability Index (University of Washington: Runstad Center for Real Estate Studies)
The Runstad Center for Real Estates Studies Housing Affordability index measures the ability of a middle-class family to purchase a home. For example, an index of 126 means that a family earning the median income has 26% more income than is needed to qualify for a mortgage on a median-priced home. The index is calculated using housing prices, incomes and interest rates.
Housing affordability has decreased slightly since 2013 but remains well above the pre-recession years of 2006-2008.
After the economic recession in 2008, housing affordability has increased due to low interest rates and large supply (partly the result of a large number of foreclosures). Increasing demand for housing as the economy recovers has tempered the increase in housing affordability.