The REALTORS® Affordability Distribution Curve and Score measures housing affordability at different income percentiles for all active inventory on the market. For each state, REALTORS® Affordability Distribution Curve shows how many houses are affordable to households ranked by income while REALTORS® Affordability Distribution Score is the measure which is intended to represent affordability for all different income percentiles in a single measure.
The REALTORS® Affordability Distribution Score is different in two major ways from the existing Housing Affordability Index (HAI):
- It considers affordability for all income percentiles, not just the median income, and
- It looks at affordability of active inventory or homes currently available for sale instead of homes that have already sold.
Affordability Distribution Curve
The Affordability Distribution Curve examines how many listings are affordable to those in a particular income percentile.
The Affordability Score—varying between zero and two—is a calculation that is equal to twice the area below the Affordable Distribution Curve on a graph. A score of one or higher generally suggests a market where homes for sale are more affordable to households in proportion to their income distribution.