Annual Housing Affordability in the Greater Phoenix Area
Since 1985, ASU Realty Studies has computed affordability indexes for Greater Phoenix. When the index value is 100, the typical home buyer (based on the current median resale price and household income) will be able to afford a median-priced home at the stated effective interest rate. A lower index value indicates less affordable single-family homes, but does not take into account alternative housing forms such as townhouse/condominiums or manufactured housing. Just as changes in the median sales price can affect the affordability index, changes in any of the other assumptions used to compute the index also will impact its value. A key assumption is that a household earns the median income.