Illinois Home Affordability
The data below quantifies Illinois home affordability by using home prices and home price indices to calculate price-to-income and price-to-rent ratios.1 The maximum affordable loan amount for the median household income is also calculated. You can also compare Illinois home affordability to other states.
Illinois Home Price-to-Income Ratios
The home price-to-income ratio for Illinois comes from the Federal Housing Finance Agency's relatively new state median price series and their purchase only index combined with Illinois annual median household income data. The FHFA home price series yields a dollar ratio (top chart) while the index results in an index ratio (bottom chart). Based on the latest FHFA state home prices in June 2010, the price-to-income ratio for Illinois was 3.00.
Home Price-to-Income Dollar Ratio: FHFA
Home Price-to-Income Index Ratio: FHFA
Note: Index set to 100 in Q1 of 2000
Illinois Home Price-to-Income Ratio History
| Date |
FHFA (Dollar Ratio) |
FHFA (Index Ratio) |
|---|---|---|
| September 2011 | — | 113.5 |
| June 2011 | — | 112.7 |
| March 2011 | — | 115.0 |
| December 2010 | — | 117.9 |
| September 2010 | — | 119.0 |
| June 2010 | 3.00 | 121.7 |
| March 2010 | 2.89 | 121.3 |
| December 2009 | 2.86 | 116.7 |
| September 2009 | 2.92 | 119.6 |
| June 2009 | 2.91 | 119.6 |
Illinois Home Price-to-Rent Ratios
The price-to-rent ratio for Illinois is determined for both the FHFA median price and the purchase only index by calculating a ratio with the median contract rent. The price-to-adjusted rent value takes into account CPS reported household size to attempt to correct for quality differences in renter and owner occupied homes. More on that process here. Again, the median price ratio is a dollar ratio and the HPI ratio is an index ratio defined to be 100 in Q1 2000. The adjusted price-to-rent ratio for Illinois was 15.66 in June 2010.
Home Price-to-Rent Dollar Ratio: FHFA, FHFA Adjusted Rent
Home Price-to-Rent Index Ratio: FHFA
Note: Index set to 100 in Q1 of 2000
Illinois Home Price-to-Rent Ratio History
| Date |
FHFA (Dollar Ratio) |
FHFA Adjusted (Dollar Ratio) |
FHFA (Index Ratio) |
|---|---|---|---|
| September 2011 | — | — | 92.8 |
| June 2011 | — | — | 92.2 |
| March 2011 | — | — | 94.0 |
| December 2010 | — | — | 96.4 |
| September 2010 | — | — | 97.3 |
| June 2010 | 17.52 | 15.66 | 99.5 |
| March 2010 | 16.86 | 15.07 | 99.2 |
| December 2009 | 17.82 | 15.43 | 101.8 |
| September 2009 | 18.17 | 15.74 | 104.3 |
Illinois Inferred Affordable Mortgage
The inferred affordable mortgage is determined by taking the median household income for Illinois and calculating the mortgage 30% of that income could afford. Traditionally, 30% of income is the maximum amount a homeowner could use towards a home loan. Inferred affordable loan values are calculated from median household income and average monthly mortgage rates. The amounts are not adjusted for inflation.
Inferred Affordable Mortgage
Illinois Inferred Affordable Mortgage History
| Date | Inferred Mortgage |
|---|---|
| November 2011 | $266,132 |
| October 2011 | $263,578 |
| September 2011 | $262,315 |
| August 2011 | $257,350 |
| July 2011 | $248,994 |
| June 2011 | $250,162 |
| May 2011 | $246,394 |
| April 2011 | $240,762 |
| March 2011 | $240,762 |
| February 2011 | $237,747 |
| January 2011 | $242,991 |
| December 2010 | $244,400 |
| November 2010 | $256,435 |
1. Specifically, Home prices are from the FHFA seasonally adjusted, purchase only quarterly series. Rent data is from the Census ACS and income is from the Census CPS. Rent and income data for the previous year is carried into the following year for calculations prior to release of new data. ↩
Department of Numbers
The Department of Numbers contextualizes public data so that individuals can form independent opinions on everyday social and economic matters.
