Department of Numbers

North Carolina Home Affordability

The data below quantifies North Carolina 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 North Carolina home affordability to other states.

North Carolina Home Price-to-Income Ratios

The home price-to-income ratio for North Carolina comes from the Federal Housing Finance Agency's relatively new state median price series and their purchase only index combined with North Carolina 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 North Carolina was 3.53.

Home Price-to-Income Dollar Ratio: FHFA

Chart of North Carolina home price-to-income ratio using FHFA median price

Home Price-to-Income Index Ratio: FHFA

Chart of North Carolina home price-to-income ratio using FHFA HPI

Note: Index set to 100 in Q1 of 2000

North Carolina Home Price-to-Income Ratio History

Date FHFA
(Dollar Ratio)
FHFA
(Index Ratio)
December 2013 124.4
September 2013 123.7
June 2013 121.6
March 2013 120.4
December 2012 117.1
September 2012 116.2
June 2012 115.5
March 2012 114.6
December 2011 106.3
September 2011 105.7

North Carolina Home Price-to-Rent Ratios

The price-to-rent ratio for North Carolina 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 North Carolina was 21.68 in June 2010.

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

Chart of North Carolina home price-to-rent ratio using FHFA median price

Home Price-to-Rent Index Ratio: FHFA

Chart of North Carolina home price-to-rent ratio using FHFA HPI

Note: Index set to 100 in Q1 of 2000

North Carolina Home Price-to-Rent Ratio History

Date FHFA
(Dollar Ratio)
FHFA Adjusted
(Dollar Ratio)
FHFA
(Index Ratio)
December 2013 95.7
September 2013 95.2
June 2013 93.6
March 2013 92.6
December 2012 90.1
September 2012 89.4
June 2012 88.9
March 2012 88.2
December 2011 93.3

North Carolina Inferred Affordable Mortgage

The inferred affordable mortgage is determined by taking the median household income for North Carolina 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 North Carolina maximum affordable home loan amount

North Carolina Inferred Affordable Mortgage History

Date Inferred Mortgage
February 2014 $209,920
January 2014 $206,718
December 2013 $205,990
November 2013 $210,919
October 2013 $212,686
September 2013 $205,266
August 2013 $205,990
July 2013 $208,187
June 2013 $215,767
May 2013 $230,197
April 2013 $232,787
March 2013 $229,342
February 2013 $230,482

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.