Condominium Affordability Index: Understanding Your Buying Power
The Condominium Affordability Index (CAI) measures the ability of households to purchase condominiums in a given area. It compares the median income of households to the costs associated with buying a condo, including mortgage payments. Various factors influence the CAI, such as housing prices, median household income, and mortgage rates. Understanding these components is crucial for both buyers and real estate professionals navigating the market efficiently. Understanding the Condominium Affordability Index Assessing the affordability of condominiums requires a multifaceted approach. This section delves into the components and historical relevance of the affordability measures. What Is the Condominium Affordability Index? The Condominium Affordability Index serves as a benchmark for evaluating how well individuals or families can afford to purchase a condo in their specific area. It typically synthesizes various economic indicators, showcasing the balance between income levels a...