Hamilton less affordable than Las Vegas, Oxford Economics report finds
Hamilton is the fifth-least affordable city in North America, according to new research from Oxford Economics.
Vancouver was ranked as the least affordable city overall, while Toronto landed in third - making all three cities less affordable than Las Vegas, San Jose and Los Angeles.
The report, published by Oxford Economics on Oct. 18, said homes in Canada are 35 per cent more expensive than what the average household could afford to purchase.
Housing continues to be more affordable in the (United States) than Canada," read the report, while noting that affordability in Canada is also expected to worsen more quickly" than compared to its neighbour south of the border.
The study comes just weeks after experts from the Canada Mortgage and Housing Corporation (CMHC) said the housing market in Hamilton remains overheated" as a critically low supply plays catch-up with demand.
And, as a result of intensifying competition, buyers are offering above listing price - which, in turn, is causing home prices to skyrocket.
Potential buyers will find homes most out of reach in Vancouver, Boise (Idaho), Toronto, Portland (Oregon), Hamilton (Ontario), Las Vegas, San Jose, and (Los Angeles)," read the report. Canada's hot housing market has (shown) some signs of cooling, but demand-supply conditions remain tight and prices are at historic highs."
For the report, Oxford Economics used housing affordability indices (HAI) to analyze 30 cities across North America. The index measures whether a typical family could afford a median-priced home in a city, according to the Bank of Canada.
The quarterly report showed that affordability deteriorated" in nearly every city they looked at, as house prices outpaced income growth for families.
Affordability is expected to worsen next year, despite our forecast for a plateauing of house prices, as mortgage rates rise from historically low levels," read the report.
Of the Canadian cities, Vancouver saw its affordability worsen the most, followed by Montreal, Toronto, Hamilton and Ottawa. Affordability in the Prairies deteriorated slightly," but remained far more affordable than the rest of the country," according to the report.
Four Canadian cities ranked among the most affordable, including Quebec City, which ranked second overall behind Chicago. Edmonton came in fourth, while Winnipeg came in sixth and Calgary landed in the No. 9 spot.
Fallon Hewitt is a Hamilton-based reporter at The Spectator. Reach her via email: fhewitt@thespec.com