The affordable housing struggle has and continues to cloud a significant point. During the 12 months ending in mid August, 65% of all the homes sold in the Tri-Cities region were in the affordable housing price ranges.

That number shocks some who argue there’s no affordable housing due to the migration of new residents. The migration of new residents is one factor that has driven home higher. But much of the affordability discussion centers on the inability of local residents whose salaries and buying power have not kept pace with home price increases.

Getting a grip on the affordability issue is also complicated by how affordability is defined. That varies for every individual or family and their financial situations, but the numbers seen in print are a broader affordable base and many potential buyers fall through the cracks.

The most used affordability method is based on what lenders would like to see. It includes a 20% down payment, a solid 28% front-end income-to-debt ratio and a good credit rating. There’s nothing wrong with this model except the local average down payment is closer to 12% than 20%. That means buyers must buy private mortgage insurance which adds hundreds of dollars a month to the monthly mortgage payment.

Here’s how that’s mortgage payment issue is playing out in the local counties monitored by the Atlanta Federal Bank Home Ownership Affordability Tracker. The first figure is the current average monthly mortgage payment plus interest. The second is the average monthly mortgage payment, interest, and private mortgage insurance. The percentage is the share of the owner’s gross income spent on housing. The recommended affordability level is 30%.

Carter – $1,658, $1,983, 36.9%

Hawkins – $1,487, $1,791, 37.9%

Greene – $1,578, $1,977, 47.4%

Sullivan – $1,487, $1,791, 37.9%

Unicoi – $$1,658, $1,983, 36.9%

Washington – $1,658, $1,983, 36.9%

The Atlanta Federal Reserve Bank takes the payment data a step further with their Home Ownership Affordability Index.

An index of less than 100 is unaffordable.

Carter – 75.3

Washington – 82.6

Unicoi – 90.1

Greeneville – 65.8

Sullivan – 76.4

Hawkins – 85.6

There’s no question that affordability has taken a hit from prior local levels. And the region’s status as home to some of the most affordable housing levels for locals has gone the way of disco. Still, when median home sale prices are compared, the Tri-Cities region remains one of the most affordable in East Tennessee.