Department of Numbers

New York Home Affordability

The data below quantifies New York 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 New York home affordability to other states.

New York Home Price-to-Income Ratios

The home price-to-income ratio for New York comes from the Federal Housing Finance Agency's relatively new state median price series and their purchase only index combined with New York 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 New York was 4.93.

Home Price-to-Income Dollar Ratio: FHFA

Chart of New York home price-to-income ratio using FHFA median price

Home Price-to-Income Index Ratio: FHFA

Chart of New York home price-to-income ratio using FHFA HPI

Note: Index set to 100 in Q1 of 2000

New York Home Price-to-Income Ratio History

Date FHFA
(Dollar Ratio)
FHFA
(Index Ratio)
December 2013 150.4
September 2013 148.6
June 2013 147.0
March 2013 146.0
December 2012 145.0
September 2012 144.3
June 2012 144.2
March 2012 143.8
December 2011 134.7
September 2011 135.9

New York Home Price-to-Rent Ratios

The price-to-rent ratio for New York 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 New York was 20.06 in June 2010.

Home Price-to-Rent Dollar Ratio: FHFA, FHFA Adjusted Rent

Chart of New York home price-to-rent ratio using FHFA median price

Home Price-to-Rent Index Ratio: FHFA

Chart of New York home price-to-rent ratio using FHFA HPI

Note: Index set to 100 in Q1 of 2000

New York Home Price-to-Rent Ratio History

Date FHFA
(Dollar Ratio)
FHFA Adjusted
(Dollar Ratio)
FHFA
(Index Ratio)
December 2013 112.0
September 2013 110.6
June 2013 109.4
March 2013 108.7
December 2012 108.0
September 2012 107.4
June 2012 107.4
March 2012 107.1
December 2011 109.2

New York Inferred Affordable Mortgage

The inferred affordable mortgage is determined by taking the median household income for New York 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

Chart of New York maximum affordable home loan amount

New York Inferred Affordable Mortgage History

Date Inferred Mortgage
February 2014 $240,871
January 2014 $237,198
December 2013 $236,363
November 2013 $242,019
October 2013 $244,046
September 2013 $235,531
August 2013 $236,363
July 2013 $238,883
June 2013 $247,581
May 2013 $264,138
April 2013 $267,111
March 2013 $263,158
February 2013 $264,466

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.