FAQs
What is the Cost of Housing Index (CHI)?
The Cost of Housing Index (CHI) is calculated by the National Association of Home Builders (NAHB) and Wells Fargo. It tracks the percentage of a family’s income needed to cover the mortgage payment on a median-priced new or existing home.
How is the CHI calculated?
The CHI is calculated based on the local median home price and median income in 176 metropolitan areas. It provides insight into the affordability challenges facing American families in different markets.
Which markets were the most severely cost-burdened in the fourth quarter of 2024?
The most severely cost-burdened markets in the fourth quarter of 2024 were:
- San Jose-Sunnyvale-Santa Clara, Calif. (87%)
- Urban Honolulu, Hawaii (74%)
- San Diego-Chula Vista-Carlsbad, Calif. (69%)
- San Francisco-Oakland-Berkeley, Calif. (69%)
- Naples-Marco Island, Fla. (65%)
Which markets were the least cost-burdened in the CHI?
The least cost-burdened markets in the CHI were:
- Decatur, Ill. (16%)
- Cumberland, Md.-W.Va (17%)
- Springfield, Ill. (17%)
- Elmira, N.Y. (19%)
- Peoria, Ill. (19%)
Conclusion
The Cost of Housing Index highlights the significant challenges faced by American families in terms of housing affordability. With a substantial portion of income required to cover mortgage payments, many families, especially low-income households, are severely burdened by housing costs. The variation in affordability across different metropolitan areas underscores the need for targeted policies and interventions to address these disparities and ensure access to affordable housing for all.