Department of Numbers

This section of Department of Numbers is no longer being updated and may be removed in the future. The data here is out of date and should no longer be used.

Wisconsin Home Affordability

The data below quantifies Wisconsin 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 Wisconsin home affordability to other states.

Wisconsin Home Price-to-Income Ratios

The home price-to-income ratio for Wisconsin comes from the Federal Housing Finance Agency's relatively new state median price series and their purchase only index combined with Wisconsin 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 Wisconsin was 3.05.

Home Price-to-Income Dollar Ratio: FHFA

Chart of Wisconsin home price-to-income ratio using FHFA median price

Home Price-to-Income Index Ratio: FHFA

Chart of Wisconsin home price-to-income ratio using FHFA HPI

Note: Index set to 100 in Q1 of 2000

Wisconsin Home Price-to-Income Ratio History

(Dollar Ratio)
(Index Ratio)
December 2013 111.7
September 2013 110.7
June 2013 109.8
March 2013 107.6
December 2012 105.9
September 2012 106.0
June 2012 105.6
March 2012 106.0
December 2011 108.0
September 2011 107.6

Wisconsin Home Price-to-Rent Ratios

The price-to-rent ratio for Wisconsin 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 Wisconsin was 17.84 in June 2010.

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

Chart of Wisconsin home price-to-rent ratio using FHFA median price

Home Price-to-Rent Index Ratio: FHFA

Chart of Wisconsin home price-to-rent ratio using FHFA HPI

Note: Index set to 100 in Q1 of 2000

Wisconsin Home Price-to-Rent Ratio History

(Dollar Ratio)
FHFA Adjusted
(Dollar Ratio)
(Index Ratio)
December 2013 97.7
September 2013 96.8
June 2013 96.0
March 2013 94.1
December 2012 92.7
September 2012 92.7
June 2012 92.4
March 2012 92.7
December 2011 93.8

Wisconsin Inferred Affordable Mortgage

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

Wisconsin Inferred Affordable Mortgage History

Date Inferred Mortgage
February 2014 $268,145
January 2014 $264,056
December 2013 $263,126
November 2013 $269,422
October 2013 $271,679
September 2013 $262,200
August 2013 $263,126
July 2013 $265,932
June 2013 $275,615
May 2013 $294,046
April 2013 $297,355
March 2013 $292,955
February 2013 $294,411

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.