Home Buyers Index: Detroit Region
The Home Buyers Index (HBI) measures the affordability of a home purchase. The index is benchmarked to 100, which signifies a household has exactly enough income to qualify for a mortgage on a median-priced home. An increase (decrease) in the HBI means that a house payment is more (less) affordable.
The HBIs for the metro Detroit cities and counties are above 100. There are considerable differences, however, across the cities (shown in the table and bar chart). Detroit and Pontiac have the most affordable housing markets, while Birmingham and Rochester are notably less affordable than other cities in the region.
Since 2011 housing affordability has declined across all the cities (displayed in chart). The decline in home affordability is due to housing prices increasing substantially faster than median household income during the recovery from the recession.
A HBI chart for each city since January 2011, a table that has the change in the HBI since last month and from a year ago, and a bar chart that displays the HBI for each city in the latest month are displayed below. The HBI is updated monthly.