Indianapolis And L.A. In US Home Affordability Study

The National Association of Home Builders (NAHB) survey for the three months ended June 30, 2007 showed Midwest cities to have the most affordable housing.

Indianapolis was the most affordable of the major housing markets, where $122,000 was needed to purchase the median home. Indianapolis scored a rating of 86.8 in the survey meaning that approximately 14 percent of homes purchased were unobtainable by an average family.

By contrast, only 3 percent of the Los Angeles homes that sold were considered affordable for a typical family. In Los Angeles $530,000 was needed to buy the medium home.

The survey considered housing affordable when the housing expenses were no more than 28 percent of income. These expenses would have included insurance, property taxes and mortgage payments.