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This fact sheet provides several affordability measures that indicate the degree of need for affordable housing in the area. Housing affordability is clearly tied to income with housing cost generally considered excessive if a household is required to spend more than 30% of their income for their housing unit.

Housing Affordability Index (at 60% Median Household Income)

A Housing Affordability Index (HAI) provides an intuitive number for measuring housing affordability based on the percent of typical income needed to afford the typical housing unit. For the following two charts and map, the typical income represented is 60% of median household income (a generally accepted threshold representative of lower-income households).

The HAI (at 60% Median Household Income) is depicted for the most recent quarter in the chart below. The blue box illustrates the overall HAI which reflects, for the typical household with income at 60% of the median household income for the area, the percent of income required to occupy the median housing unit including both sold and rented housing. The overall HAI is the weighted average of the sold and rental components (each component is weighted by its respective share of the housing market; sold by the percent of owners and rental by the percent of renters). The orange box illustrates the sold component of the overall HAI and measures, for the typical household with income at 60% of the median household income, the percent of income required for the Principal, Interest, Taxes, and Homeowner’s Insurance (PITI) payment for the median unit sold. The yellow box represents the rental component of the overall HAI and measures, for the typical household with income at 60% of the median household income, the percent of median household income required for gross rent, including utilities, for the median unit rented.

For households making 60% of median income, what percent of their income is needed to afford a typical home?

There were about households with incomes at or below 60% of median.
Affordability from a Metropolitan Perspective (Not applicable for State): Replacing the jurisdiction 60% of median household income with the metropolitan 60% of median household income of results in a revised HAI of (with the sold component = and the rent component = ).

NA = Data not available.
Note: Owner costs are based on units sold in this quarter. If number of sales is small, view index with caution.
Sources: MLS Sales Data (Virginia Association of REALTORS®), U.S. Census, American Community Survey, and Virginia Tech Center for Housing Research.

Affordability Over Time for Households with Incomes at 60% of the Median Income

The following chart shows the trend over time of housing affordability (percentage of income needed to afford housing) for households with incomes at 60% of median household income for the area. The higher the percentage of income required, the less affordable the housing. Quarterly indexes are shown for all housing which represents the percent of income required for the typical housing unit (either sold or rented); the sold component which represents percent of income required for the typical sold unit; and the rent component which represents the percent of income required for the typical rented unit.

How has that percentage changed over time?

Missing points = Data not available.
Note: A small number of sales may cause erratic trends.
Sources: MLS Sales Data (Virginia Association of REALTORS®), U.S. Census, American Community Survey, and Virginia Tech Center for Housing Research.

This map, for the most recent quarter, shows the Housing Affordability Index at 60% of Median Household Income for Virginia Counties and Independent Cities allowing for a visual comparison of housing affordability of the typical housing unit with other localities in Virginia. More intense red color indicates a higher index (meaning a larger percent of household income is needed for housing). Grey color indicates that data is not available.Move mouse over the map to see the percentage values for individual localities. Use the sliders at the bottom of the map to select a range of values to display (the default is all, 0%-100%).

Housing Cost Burdened Households

Housing cost burden reflects the percent of income paid for housing by each household living in the area (the U.S. Census only reports data for communities with populations of 20,000 or more). Although obviously related, housing cost burden is a distinctly different measure than the housing affordability indexes that are based on the typical housing cost and the median income. Even though the average unit might be affordable to the average household, individual households may face significant problems with housing affordability.

The housing cost burden measure reflects the preferences, budgets, and housing units available to each individual household, as well as any public or private housing assistance they receive. Some households might obtain lower-cost housing by doubling-up with relatives or accepting crowded living conditions, while other households might accept higher cost burdens to obtain larger units or more desirable locations.

Housing Cost Burden by Year

This chart shows both the number and percent of households with housing cost burden by year. A household is considered cost burdened if paying more than 30% of their household income for housing. This housing affordability measure reflects affordability at the individual household level as it is based on the housing costs and income of an individual household.

What percentage of households are paying more than 30% of their income for housing and how has that changed over time?

*Cost Burden: Housing costs more than 30% of reported household income.
Note: Numbers are based on a sample and are subject to sampling variability.
Sources: U.S. Census, American Community Survey and Virginia Tech Center for Housing Research.

Housing Cost Burden by Income

The following chart shows both the number and percent of owner households and renter households with housing cost burden by household income categories. A household is considered cost burdened if paying more than 30% of their household income for housing. This housing affordability measure reflects affordability at the individual household level as it is based on the housing costs and income of an individual household.

What percentage of households are paying more than 30% of their income for housing by income and tenure?

*Cost Burden: Housing costs more than 30% of reported household income.
Note: Numbers are based on a sample and are subject to sampling variability.
Sources: U.S. Census, American Community Survey and Virginia Tech Center for Housing Research.

Relationship of Income to Housing Cost

Two charts are provided showing the relationship between income and housing cost in the area. To better reflect housing affordability, the median income is adjusted to 30% of median income or the typically accepted maximum amount of income that can be affordably allocated to housing (this standard is generally associated with individual households but is applied here as an approximation of affordability at the median).

The chart below, shown by quarter, shows the relationship between owner income and owner housing cost over time. The chart reflects 30% of median owner income for the area and the annualized median owner cost based on median sales price and other mortgage cost factors. The chart answers the questions, “Is the typical owner income sufficient to afford the typical owned unit and has owner income kept pace with owner housing cost over time?”

How have median housing sales prices compared to median owner household incomes over time?

Missing points = Data not available.
Note: A small number of sales may cause erratic trends.
Sources: MLS Sales Data (Virginia Association of REALTORS®), U.S. Census, American Community Survey, and Virginia Tech Center for Housing Research.

30% of Median Income of Renters Versus Median Renter Cost

The chart below, shown by quarter, shows the relationship between renter income and renter housing cost over time. The chart reflects 30% of median renter income for the area and the annualized median renter cost. The chart answers the questions, “Is the typical renter income sufficient to afford the typical rented unit and has renter income kept pace with renter housing cost over time?”

How have the median rental costs compared to median renter incomes over time?

Missing points = Data not available.
Note: For the state, MSAs, and large jurisdictions, the median gross rent is based on the one-year annual ACS sample data. The median gross rent for the year is adjusted by the CPI to estimate rent for a quarter.
Sources: U.S. Census, American Community Survey and Virginia Tech Center for Housing Research.

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