The Housing Affordability Indices (HAIs) show affordability deteriorated in nearly all US and Canadian metros in Q2 2021 as home price inflation outpaced income growth. Our consistent, cross-country framework points to more rapidly worsening affordability in Canada than in the US.
What you will learn:
- Potential buyers will find homes most out of reach in Vancouver, Boise (Idaho), Toronto, Portland (Oregon), Hamilton (Ontario), Las Vegas, San Jose, and L.A.
- Our national US index rose 3 points (pts) to 0.77 in Q2 from 0.74 in Q1, meaning prices were 23% lower than the median income households’ borrowing capacity. Higher mortgage rates and home prices more than offset stronger household incomes – a trend that will persist next year.
- Affordability in major metros in the neighboring Southwest & Mountains region will also decline. The HAIs of Phoenix, Denver, and Salt Lake City will rise 6pts on average through the end of 2022.