affordability index

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Affordability index

An index that measures the financial ability of consumers to purchase a home.

Affordability Index

An index published monthly by the National Association of Realtors showing how easy or difficult it is for a family to buy a house. A rating of 100 indicates that a family making the national (or regional) median income can buy a house at the median price. A rating below 100 means that houses are less affordable, while one above 100 shows that they are more affordable. The National Association of Realtors publishes both national and regional affordability indices.

affordability index

See housing affordability index.

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