New York, New York Home Affordability

The data below measures home affordability for the New York-White Plains-Wayne, New York 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 New York home affordability to other cities.

New York, New York Home Price-to-Income Ratios

The current price-to-income ratio for New York is 6.29 as determined by September 2011 Realtor median sales prices. The second chart shows a history of the ratio as an index calculated from the Federal Housing Finance Agency's New York HPI series. Median household income data for New York 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

New York, New York Home Price-to-Income Ratio History

Date	Realtor (Dollar Ratio)	FHFA (Index Ratio)
September 2011	6.29	145.4
June 2011	6.21	145.9
March 2011	6.07	148.5
December 2010	6.36	149.8
September 2010	6.36	149.7
June 2010	6.36	149.1
March 2010	6.36	149.8
December 2009	6.06	148.5
September 2009	6.06	149.3

New York, New York Home Price-to-Rent Ratios

The current adjusted price-to-rent ratio for New York is 26.9 as determined by September 2011 Realtor median sales prices. This ratio is calculated using household size adjusted median contract rent for New York. The chart below shows an index of the rent ratio calculated from the metro FHFA HPI series and the New York 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

New York, New York Home Price-to-Rent Ratio History

Date	Realtor (Dollar Ratio)	Realtor Adjusted (Dollar Ratio)	FHFA (Index Ratio)
September 2011	31.37	26.90	115.2
June 2011	30.98	26.57	115.6
March 2011	30.27	25.96	117.7
December 2010	31.70	27.19	118.7
September 2010	31.70	27.19	118.7
June 2010	31.70	27.19	118.2
March 2010	31.70	27.19	118.7
December 2009	31.41	26.94	122.2
September 2009	31.41	26.94	122.9

New York, New York Home Rent-to-Mortgage Payment Ratio

The rent-to-mortgage payment ratio uses the adjusted rent for New York 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 New York was 0.64 in September 2011.

Rent-to-Mortgage Payment Dollar Ratio: Realtor

New York, New York Home Rent-to-Mortgage Payment Ratio History

Date	Realtor Adjusted Rent (Dollar Ratio)
September 2011	0.64
June 2011	0.62
March 2011	0.61
December 2010	0.59
September 2010	0.62
June 2010	0.59
March 2010	0.57
December 2009	0.58
September 2009	0.57

New York, New York Inferred Affordable Mortgage

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

Inferred Affordable Mortgage

New York, New York Inferred Affordable Mortgage History

Date	Inferred Mortgage
November 2011	$324,674
October 2011	$321,558
September 2011	$320,017
August 2011	$313,960
July 2011	$303,765
June 2011	$305,191
May 2011	$300,594
April 2011	$293,723
March 2011	$293,723
February 2011	$290,045
January 2011	$296,443
December 2010	$298,162
November 2010	$312,843