The Location Affordability Index (LAI) provides comprehensive neighborhood-level data on the true cost of living by combining both housing and transportation expenses across the United States. Developed by the U.S. Department of Housing and Urban Development (HUD) in collaboration with the Department of Transportation (DOT), this standardized dataset delivers critical affordability insights at the Census block-group level for all 50 states and the District of Columbia.
A major innovation of the Location Affordability Index is its recognition that housing costs alone provide an incomplete measure of affordability. Transportation expenses represent the second-largest component of household budgets, yet traditionally receive little consideration in housing decisions. The LAI estimates combined costs across eight different household profiles that vary by income level, household size, and number of commuters, enabling users to assess location affordability based on their specific circumstances.
Built-environment and demographic data provide context for cost estimates through information on transit accessibility, walkability, employment proximity, and neighborhood characteristics. These datasets help explain why transportation costs vary dramatically between locations—urban neighborhoods with robust public transit typically generate lower expenses than car-dependent suburban areas. Real estate professionals, urban planners, and economic development specialists use this information for site selection analysis, market evaluation, and understanding the relationship between land use patterns and household expenses.
The Location Affordability Index serves housing policy, transportation planning, and sustainable community development. Homebuyers use LAI data to make informed decisions accounting for total cost of living. Municipal planners leverage the index to evaluate affordability impacts of zoning decisions and transit investments. Researchers employ LAI data to study economic mobility, housing burden, and location efficiency, making it an essential resource for evidence-based decision-making about America's communities and infrastructure.