U.S. Real Estate Markets

The Home Price Index (HPI) is a statistical measure that tracks how residential property prices change over time in a given market. It uses repeat-sales methodology — comparing the same homes at different points in time — to isolate price movement from changes in the mix of homes sold.

Cap rate measures a property's annual net operating income as a percentage of its purchase price or current market value, assuming an all-cash purchase.

Price-to-income ratio is median-home-price divided by median-household-income—a measure of housing affordability.

Fair Market Rent (FMR) is HUD's annual estimate of what a household must pay for gross rent — rent plus tenant-paid utilities — on a privately-owned, decent, safe unit in a specific market area. FMRs are published each fall at huduser.gov and set the ceiling for Section 8 Housing Choice Voucher payment calculations.

An MSA (Metropolitan Statistical Area) is a geographic region defined by the U.S. Office of Management and Budget (OMB) based on a core urban area with a population of at least 50,000, plus the surrounding counties economically tied to it — measured primarily through commuting patterns.

A building permit is a government authorization to construct a new residential or commercial structure, and the monthly count of permits issued across the U.S. functions as a leading economic indicator that signals where housing supply is heading months before any new unit is completed.