Urban Institute Releases New Chartbook on the Affordability of Homeownership for Renters

The Urban Institute released a new Housing Affordability for Renters Index: Local Perspective and Migration chartbook. The chartbook draws on data from the “housing affordability for renters index” (HARI) to examine homeownership affordability for current renters in 100 metropolitan areas. HARI measures the percent of renters who have enough income to purchase a home.

Data come from the 2017 American Community Survey and 2017 Home Mortgage Disclosure Act. Homeownership affordability is measured for each metropolitan area by a local index, which is the share of local renters who can afford to buy a home within that metropolitan area, and by a migration index, which is the share of renters nationwide who can afford to purchase a home in that metropolitan area.

In terms of homeownership affordability for local renters, Washington-Arlington-Alexandria, DC-VA-MD-WV (30%), Phoenix-Mesa-Scottsdale, AZ (31%), Lakeland-Winter Haven, FL (31%), Las Vegas-Henderson-Paradise, NV (32%), and Cape Coral-Fort Myers, FL (34%) were the most affordable metropolitan areas. Los Angeles-Long Beach-Anaheim, CA (18%), San Diego-Carlsbad, CA (20%), Oxnard-Thousand Oaks-Ventura, CA (20%), McAllen-Edinburg-Mission, TX (21%), and Durham-Chapel Hill, NC (21%) were the least affordable metropolitan areas.

Housing Affordability for Renters Index: Local Perspective and Migration is available at: https://urbn.is/2VtdyFB