Housing in Hamilton still less affordable than LA, New York City, Vegas: Oxford Economics
Published November 1, 2021 at 10:30 am
Hamilton is back on a list of the least affordable housing markets in North America. In fact, housing in the city was even less affordable in the second quarter (Q2) of 2021 than it was in the first quarter (Q1).
The report from the Oxford Economics North America Housing Affordability Indices (HAIs) measures home prices relative to a median household income. It assumes a 20 per cent down payment and 25 per cent mortgage-to-income ratio. Anything between 0.90 and 1.1 is considered affordable, according to the index. Hamilton came in at 1.51 — or 51 per cent above affordability in Q2. That’s three points higher than the previous quarter for Hamilton.
By comparison, New York City is at 1.04, Los Angeles 1.45, and Vegas 1.47.
Current Hamilton MLS stats indicate an average house price of nearly $878,000 over the month of October. The average individual income in Hamilton is around $37,000 per year or just under $19 per hour. The household average is a little over $75,000.
Hamilton is not the most expensive city to own a home in Canada, however. Once again, Vancouver and Toronto lead the pack. Vancouver is the least affordable in the entire continent, coming in at 1.71. Toronto is the third least affordable at 1.56.
The HAIs show affordability deteriorated in nearly all US and Canadian metros in Q2 2021 as home price inflation outpaced income growth. The report points to more rapidly worsening affordability in Canada than in the US.
Eight of nine Canadian metros saw affordability worsen in Q2, led by Vancouver (+6pts), and followed by Montreal (+5pts), Toronto (+5pts), Ottawa (+4pts), and Hamilton (+3pts).
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