Indianapolis Maintains Title Of Nation's Most Affordable Housing Market

November 27, 2007 - Indianapolis, Ind. maintained its standing as the most affordable major U.S. housing market for a ninth consecutive time in the third quarter of 2007, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI), released today.
Meanwhile, nationwide housing affordability rose on a year-over-year basis but was down slightly for the quarter due to higher mortgage rates.
"Today's HOI reading indicates that 42 percent

November 27, 2007 - Indianapolis, Ind. maintained its standing as the most affordable major U.S. housing market for a ninth consecutive time in the third quarter of 2007, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI), released today.

Meanwhile, nationwide housing affordability rose on a year-over-year basis but was down slightly for the quarter due to higher mortgage rates.

"Today's HOI reading indicates that 42 percent of all new and existing homes that were sold during the third quarter were affordable to families earning the national median income of $59,000," said NAHB President Brian Catalde, a home builder from El Segundo, Calif. "This reflects a slight improvement in affordability from a year ago, when only 40.4 percent of homes were within reach of median income-earners, but is just below the 43.1 percent of homes that were affordable to median income-earners in this year's second quarter."

The HOI indicates that the national weighted interest rate on fixed and adjustable-rate mortgages – a key component in calculating the HOI – was 6.73 percent in the third quarter,

compared to 6.44 percent in the second quarter.

In the nation’s most affordable major housing market of Indianapolis, 87.5 percent of homes sold in the third quarter were affordable to families earning the area’s median household income of $63,800. Also near the top of the list for affordable major metros this time around were Detroit-Livonia-Dearborn, Mich.; Youngstown-Warren-Boardman, Ohio-Pa.; Scranton-Wilkes-Barre, Pa.; and Grand Rapids-Wyoming, Mich., in that order.

One smaller metro market (fewer than 500,000 people) outranked all others in terms of housing affordability during the third quarter. This was Kokomo, Ind., where 90.5 percent of all homes sold in the period were affordable to families earning that area’s median household income of $59,700.

Also maintaining its long-held standing on the HOI was Los Angeles-Long Beach-Glendale, Calif., which has now been the nation’s least-affordable major housing market for a dozen consecutive quarters. There, just 3.7 percent of new and existing homes sold during the third quarter were affordable to those earning the area’s median family income of $61,700.

Other major metros at the bottom of the housing affordability chart included Santa Ana-Anaheim-Irvine, Calif.; San Francisco-San Mateo-Redwood City, Calif.; New York-White Plains-Wayne, N.Y.-N.J.; and Nassau-Suffolk, N.Y., in that order.

Among metro areas smaller than 500,000 people, every entry at the bottom of the affordability chart was located in California, starting with Napa as the least affordable and followed by Salinas, San Luis Obispo-Paso Robles, Santa Cruz-Watsonville, and Merced, Calif., respectively.

Please visit www.nahb.org/hoi for tables, historic data and details.

EDITOR’S NOTE: The NAHB/Wells Fargo HOI is a measure of the percentage of homes sold in a given area that are affordable to families earning that area’s median income during a specific quarter. Prices of new and existing homes sold are collected from actual court records by First American Real Estate Solutions, a marketing company. Mortgage financing conditions incorporate interest rates on fixed- and adjustable-rate loans reported by the Federal Housing Finance Board.

The NAHB/Wells Fargo Housing Opportunity Index is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public.

		Housing Opportunity Index:3rd Quarter 2007
		Areas with Population of 500,000 or more in 2006
		10 Most Affordable Metro Areas				10 Least Affordable Metro Areas
	1.	Indianapolis-Carmel, IN			1.	Los Angeles-Long Beach-Glendale, CA ^^^
	2	Detroit-Livonia-Dearborn, MI ^^^			2.	Santa Ana-Anaheim-Irvine, CA ^^^
	3.	Youngstown-Warren-Boardman, OH-PA			3.	San Francisco-San mateo-Redwood City, CA ^^^
	4.	Scranton--Wilkes-Barre, PA			4.	New York-White Plains-Wayne, NY-NJ ^^^
	5.	Grand Rapids-Wyoming, MI			5.	Nassau-Suffolk, NY ^^^
	6.	Toledo, OH			6.	Fresno, CA
	7.	Warren-Troy-Farmington Hills, MI ^^^			7.	Modesto, CA
	8.	Syracuse, NY			8.	San Diego-Carlsbad-San Marcos, CA
	9.	Buffalo-Niagara Falls, NY			9.	Riverside-San Bernardino-Ontario, CA
	10.	Harrisburg-Carlisle, PA			10.	Miami-Miami Beach-Kendall, FL ^^^
		Areas with Population under 500,000 in 2006
		10 Most Affordable Metro Areas				10 Least Affordable Metro Areas
	1.	Kokomo, IN			1.	Napa, CA
	2.	Bay City, MI			2.	Salinas, CA
	3.	Lansing-East Lansing, MI			3.	San Luis Obispo-Paso Robles, CA
	4.	Davenport-Moline-Rock Island, IA-IL			4.	Santa Cruz-Watsonville, CA
	5.	Springfield, OH			5.	Merced, CA
	6.	Lima, OH			6.	Santa Barbara-Santa Maria-Goleta, CA
	7.	Mansfield, OH			7.	El Centro, CA
	8.	Flint, MI			8.	Santa Rosa-Petaluma, CA
	9.	Battle Creek, MI			9.	Madera, CA
	10.	Canton-Massillon, OH			10.	Hanford-Corcoran, CA
		style='mso-spacerun:yes'>Sales Transaction Data: style='mso-spacerun:yes'>First American Real Estate Solution
		style='mso-spacerun:yes'>Interest Rates: Federal Housing Finance Board
		style='mso-spacerun:yes'>Median Household Income: Housing & Urban Development Department (HUD)
		style='mso-spacerun:yes'>Property Taxes & Insurance:Bureau of the Census
		Population:Bureau of the Census
		^^^ style='mso-spacerun:yes'>Indicate Metropolitan Divisions. style='mso-spacerun:yes'>All others are Metropolitan Statistical Areas.