Cincinnati Real Estate: Cincinnati Compares Favorably in Housing Affordability

The National Association of Realtors Housing Affordability Index reported a 13.6 percentage point increase to 166.8 in January, which is a new record high. An index of 100 means a person with a median income has exactly enough income for an 80% mortgage on a median-priced home (assuming a favorable credit score). An index above 100 equates to even more housing affordability. The January 2009 affordability index for the nation was slightly better than 100 reafirming that in most areas of the country housing affordbility continues to increase.

According to the Cincinnati Area Board of Realtors, Cincinnati’s index of 244.4 is higher than the national average due to more attractive home prices, lower housing costs, and a higher median income. This means we have more home buying power in the Cincinnati real estate market. The housing affordability in the midwest in general continues to draw corporate headquarters to our area. The graph below shows how Cincinnati compares to the nation.

Cincinnati Real Estate Affordability Index