Downward Spiral - Housing Affordability Index
The Housing Affordability Index (HAI), as calculated by WSU’s Washington Center for Real Estate Research, continues it’s downward spiral. Figures for 2nd quarter 2006 show the HAI for King County is 70.4, down from 1st quarter’s 77.1. It’s even tougher on first-time home buyers who have an HAI of 39.4.
Housing Affordability Index measures the ability of middle income family to carry the mortgage payments on a median price home. When the index is 100 there is a balance between the family’s ability to pay and the cost. Higher indexes indicate housing is more affordable.