Louisville, Kentucky Home Affordability
The data below measures home affordability for the Louisville-Jefferson County, Kentucky 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 Louisville home affordability to other cities.
Louisville, Kentucky Home Price-to-Income Ratios
The current price-to-income ratio for Louisville is 2.61 as determined by March 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 Louisville HPI series. Median household income data for Louisville 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
Louisville, Kentucky Home Price-to-Income Ratio History
| Date |
Realtor (Dollar Ratio) |
FHFA (Index Ratio) |
|---|---|---|
| March 2013 | 2.61 | — |
| December 2012 | 2.88 | — |
| September 2012 | 2.88 | — |
| June 2012 | 2.88 | — |
| March 2012 | 2.88 | — |
| December 2011 | 2.74 | — |
| September 2011 | 2.74 | — |
| June 2011 | 2.74 | — |
| March 2011 | 2.74 | — |
Louisville, Kentucky Home Price-to-Rent Ratios
The current adjusted price-to-rent ratio for Louisville is 17.24 as determined by March 2013 Realtor median sales prices. This ratio is calculated using household size adjusted median contract rent for Louisville. The chart below shows an index of the rent ratio calculated from the metro FHFA HPI series and the Louisville 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
Louisville, Kentucky Home Price-to-Rent Ratio History
| Date |
Realtor (Dollar Ratio) |
Realtor Adjusted (Dollar Ratio) |
FHFA (Index Ratio) |
|---|---|---|---|
| March 2013 | 18.67 | 17.24 | — |
| December 2012 | 20.62 | 19.04 | — |
| September 2012 | 20.62 | 19.04 | — |
| June 2012 | 20.62 | 19.04 | — |
| March 2012 | 20.62 | 19.04 | — |
| December 2011 | 19.61 | 18.11 | — |
| September 2011 | 19.61 | 18.11 | — |
| June 2011 | 19.61 | 18.11 | — |
| March 2011 | 19.61 | 18.11 | — |
Louisville, Kentucky Home Rent-to-Mortgage Payment Ratio
The rent-to-mortgage payment ratio uses the adjusted rent for Louisville 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 Louisville was 1.07 in March 2013.
Rent-to-Mortgage Payment Dollar Ratio: Realtor
Louisville, Kentucky Home Rent-to-Mortgage Payment Ratio History
| Date |
Realtor Adjusted Rent (Dollar Ratio) |
|---|---|
| March 2013 | 1.07 |
| December 2012 | 0.99 |
| September 2012 | 0.97 |
| June 2012 | 0.95 |
| March 2012 | 0.92 |
| December 2011 | 0.97 |
| September 2011 | 0.95 |
| June 2011 | 0.91 |
| March 2011 | 0.87 |
Louisville, Kentucky Inferred Affordable Mortgage
The inferred affordable mortgage value is determined by taking the median household income for Louisville, Kentucky 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
Louisville, Kentucky Inferred Affordable Mortgage History
| Date | Inferred Mortgage |
|---|---|
| January 2013 | — |
| December 2012 | — |
| November 2012 | — |
| October 2012 | — |
| September 2012 | — |
| August 2012 | — |
| July 2012 | — |
| June 2012 | — |
| May 2012 | — |
| April 2012 | — |
| March 2012 | — |
| February 2012 | — |
| January 2012 | — |
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. ↩
Department of Numbers
The Department of Numbers contextualizes public data so that individuals can form independent opinions on everyday social and economic matters.
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