Explore commonly used personal finance terms.
The affordability index is a measure of how affordable a particular market’s housing is for the average person, taking into account factors like income, interest rates, and home prices. This index helps assess whether homes are within financial reach for buyers in a given area, guiding real estate investors, policymakers, and homebuyers. An affordability index above 100 indicates better affordability, while a score below 100 suggests that housing is less affordable, impacting market demand and housing policies.
