Critiquing the International Housing Affordability Survey

Many lower- and moderate-income households spend more on housing and transportation than considered affordable. When families cannot afford food or healthcare, the real reason is generally excessive housing and transport cost burdens. This harms families and communities. As a result, there is considerable interest in tools for evaluating unaffordability problems and potential solutions. The Demographia International Housing Affordability Survey (IHAS) rates regional housing affordability using Median Multiples (the ratio of median house prices to median incomes) and uses the results to advocate for urban expansion. It is heavily promoted and receives significant media attention. Affordability concerns peoples’ ability to purchase basic goods and services. Since housing and transportation are most households’ two largest expenditure categories, they are the focus of most affordability analysis. Most moderate-income households spend more on these goods than is considered affordable, leaving insufficient money to purchase other essential goods such as food and healthcare. This harms individuals and communities. As a result, there is considerable interest in tools to help understand unaffordability problems and evaluate potential solutions. The International Housing Affordability Survey (IHAS) provides Median Multiple (the ratio of median house prices to median household incomes) ratings for selected urban regions. It is heavily promoted by its authors, and receives significant media attention. This critique evaluates the IHAS analysis methods and recommendations. It identifies several significant problems.