Housing Affordability Index

The housing affordability index measures if the median income family can afford a mortgage for a home in the area. Larger values indicate greater affordability. 

Sources: “Housing Affordability,” National Association of Realtors, Datasheet retrieved from https://www.nar.realtor/. Data visualization provided by the UWF Haas Center.

The federal funds target rate affects the rate at which depository institutions trade federal funds overnight, the lower this target rate the lower the cost of capital and this ripples through the market with lower interest rates. The current increase in housing affordability is impacted by the decline in the 30-year fixed rate mortgage average in the U.S. which has declined over the course from the January 2020 to December 2021. If homeowners negotiate at a lower mortgage rate they will make less on their monthly payment. The Pensacola Metro area has had an increase in the median household income, allowing for a lower percentage of resident's income to be put towards paying for housing. The decrease in 30-year fixed mortgage rate alongside the increase in the median household income has made housing more affordable in the Pensacola Metro area.

The housing affordability index for Single Family Homes measures if the median income family can afford a mortgage for a single family home in the area. Larger values indicate greater affordability. 

Sources: “Housing Affordability,” National Association of Realtors, Datasheet retrieved from https://cdn.nar.realtor/sites/default/files/documents/metro-home-prices-q2-2022-single-family-2022-08-11.pdf.  Data visualization provided by the UWF Haas Center.