Outcome: Promote affordable home ownership opportunities
Home purchase affordability gap
About this indicator
The indicator analyzes the "affordability gap" for median-income households to purchase a typical single family home or condominium. The home purchase affordability gap is defined as the difference between the price that the average household can afford to pay for a home and the median price of housing on the market.
Home purchase affordability gap for the average King County homebuyer: $80,100 (2009)
From 2000 to 2007, a 5% down payment is assumed. For 2008 to 2009, a 10% down payment is assumed. In 2009, a 5.23% interest is assumed. This bulletin further assumes housing is considered affordable when no more than 30% of monthly income is expended on housing costs, which includes both a mortgage payment and other housing costs such as utilities.