This thesis identifies the housing affordability in Muncie metropolitan areas through the interaction of the major housing market components, of supply and demand for housing units. The purpose of this work has been the investigation of the historical housing performance that Muncie has experienced from 1970 through 1990, in order to determine whether housing affordability problem exists in Muncie and how it has been developed over the study period. Two major approaches are used, cross-sectional and cohort analysis, to examine the relationships among several variables. The main variables are population, households , and housing characteristics which represent the demand and supply of housing stock.The findings from this study have determined that the housing affordability problem in Muncie has escalated more than the other areas within Delaware County since 1970. The major causes of accelerating affordability problem were the real decline of family incomes and the increase of the numbers of low-income populaion, families and households. The lack of employment opportunities, and low payroll were underlying the decline of real income. The decline in number of mortgages was also one of the causes of the afforadability problem over the course of the study period.