THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Thursday, January 5, 1995              TAG: 9501050382
SECTION: BUSINESS                 PAGE: D1   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
                                             LENGTH: Medium:   58 lines

HOUSING INDEX RATES MOST, LEAST AFFORDABLE CITIES

Lima, Ohio, and San Francisco are divided by three-fourths of a continent, and the difference between the ability of their citizens to buy a home is just as wide.

The National Association of Home Builders reported Wednesday that Lima was at the top of its Housing Opportunity Index during the July-September quarter. San Francisco was at the bottom.

Lima posted an 87.4 on the third-quarter index. That meant a family earning the median income of $38,600 could have purchased 87.4 percent of the homes sold in the area during the quarter.

But San Francisco had a 17.8, meaning a family earning the median of $57,600 could afford to buy just 17.8 percent of the homes available.

The nation, with a median income of $39,900, posted a 61.7 on the index, up from 60.0 from April through June.

As in other surveys in recent years, the most affordable markets were primarily in the Midwest and South. The least affordable were in the West, particularly California, and the Northeast. ILLUSTRATION: HOW IT WORKS

The Housing Opportunity Index measures the proportion of homes sold

in a market that a household earning the median income there could

afford. The median is the point at which half of the homes cost more

and half cost less.

[Photos]

Richmond Metropolitan Area

63 Richmond posted a 73.3 on the index. A family earning the median

of $45,900 could afford to buy 73.3 percent of available homes.

Norfolk Metropolitan Area

88 Hampton Roads posted a 70.2 on the index. A family earning the

median of $39,900 could afford to buy 70.2 percent of available

homes.

Washington - Northern Virginia

117 Washington-Northern Virginia posted a 64.4. A family earning the

median of $62,700 could afford to buy 64.4 percent of available

homes.

MOST AFFORDABLE

LEAST AFFORDABLE

[For a copy of the graphic, see microfilm for this date.]

KEYWORDS: AFFORDABLE HOUSING by CNB