Setting the Baseline for a Better Housing Affordability Index

For a given amount of income, how much should owning a house cost? That’s really the issue that a housing affordability index needs to address. And as Barry Ritholtz recently noted, it’s an issue that the National Association of Realtors®’ Housing Affordability Index completely fails to achieve (typos repaired):

via Political Calculations: Setting the Baseline for a Better Housing Affordability Index.

Housing Affordability Index: Still Worthless (ritholtz.com)
Housing Affordability (oregoneconomicanalysis.wordpress.com)

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Setting the Baseline for a Better Housing Affordability Index

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