By Shawn Cunningham
As housing affordability reaches crisis levels in many west coast cities, and homelessness is exploding, I wanted to take a moment to compare Las Vegas to other cities in this metric.
According to NAR, the housing affordability index measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national and regional levels based on the most recent price and income data.
Their methodology states:
“To interpret the indices, a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home. An index above 100 signifies that family earning the median income has more than enough income to qualify for a mortgage loan on a median-priced home, assuming a 20 percent down payment.”
So, the higher the index, the more affordable it is to purchase a home.
The April 2019 index shows that the West is now the second most expensive region after the Northeast. This is driven by the high costs of living in Pacific coast cities.
But does Las Vegas compare? Very well. Las Vegas ranks up with Phoenix as the most affordable metropolitan areas in the west (source: NAR)