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Housing Affordability Increases at Year-End 2012
Rose Quint / NAHB / February 22, 2013
Exceptionally low interest rates helped ensure a slight gain in nationwide housing affordability amid relatively stable house prices in the final quarter of 2012. The NAHB/Wells Fargo Housing Opportunity Index (HOI) rose to 74.9 percent, up from 74.1 percent in the third 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 74.9 means that 74.9 percent of all homes sold in the last three months of 2012 were affordable to families earning the national median income ($65,000).
Ogden-Clearfield, Utah held its position as the nation’s most affordable major housing market for a second consecutive quarter at the end of 2012. There, 93.7 percent of all new and existing homes sold were affordable to families earning the area’s median household income of $71,500.