Department of Numbers

Springfield, Illinois Home Affordability

The data below measures home affordability for the Springfield, Illinois metropolitan area using price-to-income and price-to-rent metrics.1 The maximum affordable loan amount for the median household income is also calculated. You can also compare Springfield home affordability to other cities.

Springfield, Illinois Home Price-to-Income Ratios

The current price-to-income ratio for Springfield is 1.89 as determined by December 2013 Realtor median sales prices. The second chart shows a history of the ratio as an index calculated from the Federal Housing Finance Agency's Springfield HPI series. Median household income data for Springfield is from the Census American Community Survey.

Price-to-Income Dollar Ratio: Realtor

Price-to-Income Index Ratio: FHFA

Note: Index set to 100 in Q1 of 2000

Springfield, Illinois Home Price-to-Income Ratio History

Date Realtor
(Dollar Ratio)
FHFA
(Index Ratio)
December 2013 1.89 100.1
September 2013 2.17 101.3
June 2013 2.16 101.4
March 2013 2.19 100.5
December 2012 2.18 99.4
September 2012 2.18 98.7
June 2012 2.18 98.5
March 2012 2.18 97.9
December 2011 2.29 106.3

Springfield, Illinois Home Price-to-Rent Ratios

The current adjusted price-to-rent ratio for Springfield is 14.47 as determined by December 2013 Realtor median sales prices. This ratio is calculated using household size adjusted median contract rent for Springfield. The chart below shows an index of the rent ratio calculated from the metro FHFA HPI series and the Springfield median contract rent data from the Census ACS.

Price-to-Rent Dollar Ratio: Realtor, Realtor Adjusted Rent

Price-to-Rent Index Ratio: FHFA

Note: Index set to 100 in Q1 of 2000

Springfield, Illinois Home Price-to-Rent Ratio History

Date Realtor
(Dollar Ratio)
Realtor Adjusted
(Dollar Ratio)
FHFA
(Index Ratio)
December 2013 15.84 14.47 98.0
September 2013 18.14 16.57 99.2
June 2013 18.05 16.49 99.2
March 2013 18.31 16.72 98.4
December 2012 18.20 16.63 97.3
September 2012 18.20 16.63 96.6
June 2012 18.20 16.63 96.4
March 2012 18.20 16.63 95.8
December 2011 17.89 16.04 97.4

Springfield, Illinois Home Rent-to-Mortgage Payment Ratio

The rent-to-mortgage payment ratio uses the adjusted rent for Springfield against a 100% loan-to-value mortgage (30-year fixed) for the median price home using Realtor home sales statistics. It's a lot like a cap rate, but I find it more appealing in ratio form. A ratio of 1.0 means that annual rent is equivalent annual mortgage payments. Values less than 1.0 indicate rents are cheaper and values greater than 1.0 mean mortgage payments are cheaper. Beware, taxes are not considered here. The rent-to-mortgage payment ratio for Springfield was 1.14 in December 2013.

Rent-to-Mortgage Payment Dollar Ratio: Realtor

Springfield, Illinois Home Rent-to-Mortgage Payment Ratio History

Date Realtor Adjusted Rent
(Dollar Ratio)
December 2013 1.14
September 2013 0.99
June 2013 1.05
March 2013 1.10
December 2012 1.14
September 2012 1.12
June 2012 1.09
March 2012 1.06
December 2011 1.09

Springfield, Illinois Inferred Affordable Mortgage

The inferred affordable mortgage value is determined by taking the median household income for Springfield, 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 ACS median household income and average monthly mortgage rates.

Inferred Affordable Mortgage

Springfield, Illinois Inferred Affordable Mortgage History

Date Inferred Mortgage
February 2014 $280,987
January 2014 $276,702
December 2013 $275,727
November 2013 $282,325
October 2013 $284,690
September 2013 $274,757
August 2013 $275,727
July 2013 $278,667
June 2013 $288,814
May 2013 $308,128
April 2013 $311,596
March 2013 $306,985
February 2013 $308,511

1. Specifically, home prices are from the non seasonally adjusted FHFA all-transactions quarterly series. Dollar ratios are calculated using NAR metro prices when available. Rent and income data are from the Census ACS and are carried forward into the following year prior to release of the new data.