Affordable homeownership is a policy that is often accorded a great deal of policy attention by governments of many countries. In this paper, we examine the market implications of setting a housing price-to-income ratio target for a market segment by the government. The policy requires active intervention by the government with regard to the targeted sector. We use a simple model of the housing market with a home-ownership affordability target to derive the market implications of such targets. In the presence of uncertainty and resource constraints, the objective of home-ownership affordability is achieved for the targeted group at the expense of greater volatility in residential construction activity.