Method evidence record

Housing Affordability Index

A housing affordability index summarises how the cost of housing in a city or market relates to what households can pay, condensing prices, rents and incomes into a single interpretable number. The simplest forms are ratios — the median house price divided by median income, or housing outlays as a share of income — while the residual-income approach championed by Michael Stone instead asks what is left for everything else after housing is paid. Together these measures let analysts compare affordability across places and over time, flag cost-burdened populations, and track housing stress as markets shift.

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Housing Affordability Index (Cost-to-Income Ratios and Residual-Income Measures)

Taxonomic method record · process-pipeline / urban-studies

Stone, M. E. (2006). What is housing affordability? The case for the residual income approach. Housing Policy Debate, 17(1), 151–184. · DOI 10.1080/10511482.2006.9521564

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