Derek McGowan argues housing affordability is improving without prices crashing. The price-to-income ratio has fallen below five from a 2022 peak of over five times annual income, and could hit four times income by end of 2026 if trends hold.
We don't need a housing market crash for affordability to return, and we're already three years into that comeback. But prices haven't dropped. So how is it getting more affordable? Affordability isn't just about price. It's about price compared to income. Back at the peak in 2022, the average house price was over five times that of someone's annual salary or income. It felt impossible to buy. Now house prices are pretty flat, incomes are rising, and it's getting more affordable. That ratio is easing. It's already dropped below five times that of somebody's annual income. And at this pace, we could see historically affordable four times that of somebody's income by the end of 2026. No crash needed, just math. This is how affordability returns to the housing market. Share this with somebody that's waiting for the housing crash that may never come.
