NAHB-Wells Fargo Housing Opportunity Index

Here is a plot of the National Association of Homebuilders (NAHB) - Wells Fargo Housing Opportunity Index for the Bay Area.

"The Housing Opportunity Index (HOI) for a given area is defined as the share of homes sold in that area that would have been affordable to a family earning the median income. For income, NAHB uses the annual median family income estimates for metropolitan areas published by the Department of Housing and Urban Development. NAHB assumes that a family can afford to spend 28 percent of its gross income on housing; this is a conventional assumption in the lending industry."