Housing Affordability for Homeowners
What does this measure?
The ratio of the median home value divided by the median household income, adjusted for inflation.
Why is this important?
This ratio provides a rough estimate of the affordability of homes in a community. A ratio less than 2 or 3 is considered affordable.
How is Orange County performing?
In 2010-14, Orange County's housing affordability ratio was 3.01, greater than the statewide (excluding NYC) and national ratios but lower than the regional rate and the other two counties in the region. The ratio rose from 2.12 in 2000 to 3.65 in 2005-09 before falling substantially from 2005-09 to 2010-14. However, the ratio in 2010-14 is still 42% higher than the rate in 2000.
The localities with the least affordable housing were Deerpark (3.71), Tuxedo (4.13), and Kiryas Joel (6.65), while those with the most affordable housing were in the villages of Montgomery (2.27), Otisville (2.24), and Maybrook (2.01).
Notes about the data
Multiyear figures are from the Census Bureau's American Community Survey. The bureau combined five years of responses to the survey to provide estimates for smaller geographic areas and increase the precision of its estimates. However, because the information came from a survey, the samples responding to the survey were not always large enough to produce reliable results, especially in small geographic areas. CGR has noted on data tables the estimates with relatively large margins of error. Estimates with three asterisks have the largest margins, plus or minus 50% or more of the estimate. Two asterisks mean plus or minus 35%-50%, and one asterisk means plus or minus 20%-35%. For all estimates, the confidence level is 90%, meaning there is 90% probability the true value (if the whole population were surveyed) would be within the margin of error (or confidence interval). The survey provides data on characteristics of the population that used to be collected only during the decennial census. Regional ratios were calculated by weighting county medians based on share of population. Data for this indicator are expected to be released in the fourth quarter.