Minnesota Home Affordability
The data below quantifies Minnesota home affordability by using state home price indices to calculate price-to-income and price-to-rent ratios. The maximum affordable loan amount for the median household income is also calculated.
Minnesota Home Price-to-Income Index
The home price-to-income ratio for Minnesota is calculated from the Federal Housing Finance Agency's purchase only index and state annual median household income data from the Census CPS.1
Home Price-to-Income: FHFA
Note: Index set to 100 in Q1 of 2000
Minnesota Home Price-to-Income Index History
| Date | FHFA |
|---|---|
| June 2010 | 135.3 |
| March 2010 | 134.3 |
| December 2009 | 137.7 |
| September 2009 | 137.6 |
| June 2009 | 138.8 |
Minnesota Home Price-to-Rent Index
The price-to-rent ratio for Minnesota is determined from the FHFA purchase only price index and median contract rent as reported by the Census ACS.
Home Price-to-Rent: FHFA
Note: Index set to 100 in Q1 of 2000
Minnesota Home Price-to-Rent Index History
| Date | FHFA |
|---|---|
| June 2010 | 107.6 |
| March 2010 | 106.7 |
| December 2009 | 109.5 |
| September 2009 | 109.3 |
| June 2009 | 110.3 |
Minnesota Inferred Affordable Mortgage
The inferred affordable mortgage is determined by taking the median household income for Minnesota 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 CPS median household income and average monthly mortgage rates.
Inferred Affordable Mortgage
| Date | Inferred Mortgage |
|---|---|
| July 2010 | $269,104 |
| June 2010 | $263,533 |
| May 2010 | $259,021 |
| April 2010 | $252,900 |
| March 2010 | $256,663 |
| February 2010 | $256,079 |
| January 2010 | $254,916 |
| December 2009 | $257,838 |
| November 2009 | $259,319 |
| October 2009 | $257,250 |
| September 2009 | $254,049 |
| August 2009 | $250,344 |
| July 2009 | $249,501 |