Many of the most affordable markets are small metropolitan areas. The Twin Cities region ranked most affordable in a comparison of the nation's 26 largest metropolitan areas, in both second and third quarters of 1998. This index is only a general indicator of affordability because it is based on affordability for households at the median income level, not lower levels of income. Nearly 200 metropolitan areas are analyzed. Court records for each area are used for sales price information, and local property tax rates and insurance rates are factored in.
Interest rates are the national weighted average of adjustable and fixed-rate loans.
Metropolitan median family income data are estimates of the U.S. Department of Housing and Urban Development.