Data Sources:

• National Association of Home Builders, Housing Opportunity Index: Third Quarter 2009
• U.S. Census Bureau, American Community Survey, 2008 (monthly owner costs as percentage of household income)

For more information about sources

Definitions:

• Affordable Housing: According to U.S. Department of Housing and Urban Development (HUD), affordable housing is that which costs no more than 30% of a household’s annual income. Families who pay more than 30% of their income for housing are considered to be cost burdened and who pay more than 50% of their income for housing are considered severely cost burdened.

Explanations and Caveats:

• The Housing Opportunity Index is based on HUD median family income, interest rates, and the price of existing and new homes sold in each market area for a particular quarter. Data on homes sold are collected from court records on 740,000 sales nationwide. A ranking of “1” indicates that an MSA has the greatest percentage of affordable homes sold in the nation or region.