Calculating whether or not you can afford to buy a house means examining your budget, spending habits, and how a mortgage payment might fit into your monthly expenses. Ultimately, it’s a calculation only you can make. After all, you’re the best judge of how much you’re comfortable spending. Still, there are several ways to get a sense of overall affordability conditions and how expensive it is to buy in today’s market. The National Association of Realtors’ Housing Affordability Index is among them and, according to the most recent numbers, the typical family can still afford to buy a median-priced home. The index – scored on a scale where any number above 100 indicates that a family with a median income can afford to buy – is currently at 101.9 nationally. That means, though conditions are tight, they’re still manageable. But like anything else, where you’re buying has a significant impact. For example, the index component measuring affordability in the Midwest scored 143.9, well above 100. The West, on the other hand, has a score of 75.5. The South and Northeast both scored just over 100. (source)