US and Canada housing affordability edged down in Q3

Our updated Housing Affordability Indices (HAIs) show affordability declined in Q3 2021 at the national level in the US and Canada as income gains and slightly lower mortgage rates weren’t enough to keep up with house prices. Potential buyers found homes remained most out of reach in Vancouver, Boise (Idaho), Portland (Oregon), Toronto, Las Vegas, San Jose, L.A., and Hamilton (Ontario).

What you will learn:

• Our national US index rose 1pt to 0.78 in Q3 2021 from 0.77 in Q2, meaning prices were 22% lower than the median income households’ borrowing capacity.
• US affordability in Q3 2021 deteriorated most sharply in the Sunbelt metros, led by Tampa (+6.9pts), Las Vegas (+5.9pts), and Austin (+5.7pts).
• Our Canada-wide HAI rose 1pt to 1.36 in Q3 2021, meaning houses were 36% above median income households’ borrowing capacity.