Department of Numbers

Detroit, Michigan Home Affordability

The data below measures home affordability for the Detroit-Livonia-Dearborn, Michigan metropolitan area using price-to-income and price-to-rent metrics. The maximum affordable loan amount for the median household income is also calculated.

Detroit, Michigan Home Price-to-Income Index

The chart below shows a history of the ratio as an index calculated from the Federal Housing Finance Agency's Detroit HPI series.1 Median household income data for Detroit is from the Census American Community Survey.2

Price-to-Income: FHFA

Note: Index set to 100 in Q1 of 2000

Detroit, Michigan Home Price-to-Income Index History

Date FHFA
June 2010 76.4
March 2010 77.3
December 2009 78.8
September 2009 80.5
June 2009 84.7

Detroit, Michigan Home Price-to-Rent Index

The chart below shows an index of the rent ratio calculated from the metro FHFA HPI series and the Detroit median contract rent data from the Census ACS.

Price-to-Rent: FHFA

Note: Index set to 100 in Q1 of 2000

Detroit, Michigan Home Price-to-Rent Index History

Date FHFA
June 2010 64.1
March 2010 64.9
December 2009 66.2
September 2009 67.6
June 2009 71.1

Detroit, Michigan Inferred Affordable Mortgage

The inferred affordable mortgage is determined by taking the median household income for Detroit, Michigan 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

Date Inferred Mortgage
July 2010 $256,983
June 2010 $251,662
May 2010 $247,354
April 2010 $241,509
March 2010 $245,102
February 2010 $244,544
January 2010 $243,434
December 2009 $246,224
November 2009 $247,638
October 2009 $245,662
September 2009 $242,606
August 2009 $239,068
July 2009 $238,263

1. Specifically, FHFA data is from the non seasonally adjusted, all-transactions quarterly series.

2. Income data for the previous year is carried into the following year prior to the release of new income data.