Understanding the Housing Affordability Index

Understanding the Housing Affordability Index: Texas and Abilene, TX

The Housing Affordability Index (HAI) is a measure that compares the median family income to the median price of housing, providing insights into how affordable housing is in a given area. This index is a critical tool for understanding the financial accessibility of homes for families across different regions. Let’s dive into what the HAI looks like for Abilene compared to the rest of Texas and what it means for you as a potential buyer or seller.

Abilene’s Affordability in Q2 2024

In Q2 2024, Abilene has an affordability rating of 1.34. This means that the median family income in Abilene is 34% higher than the income required to purchase a median-priced home. In simpler terms, housing in Abilene is quite accessible for the average family compared to many other areas.

Texas as a Whole

When we zoom out and look at Texas as a whole, the affordability rating drops to 1.04. This indicates that, on average, the median family in Texas is only earning 4% more than what’s required to buy a median-priced home. This shows that while Abilene remains relatively affordable, much of Texas is seeing a more significant squeeze on housing affordability.

A Rising Challenge

Housing affordability has become an increasing concern due to the rapid inflation in home prices, services, and general living costs over the last few years. For context, back in 2015, the median family income in Abilene was more than double what was required to buy a median-priced home. Today, that gap has narrowed significantly, highlighting a growing challenge for many families.

Although support systems exist to help those striving to achieve their dream of homeownership, housing affordability remains a crucial issue that will need ongoing focus and solutions.

Abilene: Still Affordable and Family-Friendly

The good news for us here in Abilene is that, while our affordability has declined like the rest of the country, we continue to be one of the more affordable and attractive places to live in Texas. Abilene is a fantastic place to raise a family, and the combination of a welcoming community and accessible housing makes it a great choice for buyers.

Our team at BHGRE Senter, REALTORS is here to help you navigate the complexities of the real estate market. Whether you’re buying or selling, we’re ready to support you every step of the way—just as we have been for nearly 70 years.

Contact us today to get started on making your real estate dreams a reality!