Where luxury has become the new normal, study says
In a wide-ranging study that covered the 50 most populated metropolitan areas in North America, researchers at Point2 Homes found that Vancouver is the most unaffordable real estate market in the continent.
Vancouver ranked number 1 on the study’s most expensive cities to buy and own a home in, with a median multiple of 17.3, a median home sale price of $1,108,345, and a median family income of $63,944. The city outstripped even renowned pockets of unaffordability in the Americas like Manhattan and San Francisco.
“Although homes in San Francisco and Manhattan are more expensive than those in Vancouver, with median selling prices of $1,275,000 and $1,207,500, respectively, a lower median income is what makes Vancouver’s affordability index higher than that of the two U.S. cities,” the Point2 Homes report explained.
“The median home sale price has escalated way above the median family income, turning Vancouver into one of the least affordable housing markets in the world.”
Read more: More multigenerational households a consequence of price growth – report
Multiple observers have argued that Vancouver’s affordability crisis stemmed from a steady torrent of foreign investments in the real estate sector.
“This has put home ownership out of reach for many first-time buyers, pushing them out of the local market. To make matters worse, even many well-paid local professionals are finding it increasingly difficult to afford housing in their communities,” the report added.
Meanwhile, Toronto has an affordability ratio of 7.5, with a median home sale price of $471,600 and a median income of $62,624. Despite remaining the second most unaffordable market in Canada, it would still take the average household 10 years longer to complete payment for a house in Vancouver than it would in Toronto.
As a whole, Canada has a median multiple of 7.5, with the annual median family income at $64,752 and the residential property median price at $485,680. This is nearly twofold the median cost of a home in the United States ($258,300, median multiple of 4.6).
The full study can be viewed here.
Related stories:
These Canadian cities have some of the most affordable homes in North America
Home ownership declining among Canadians – census
Vancouver ranked number 1 on the study’s most expensive cities to buy and own a home in, with a median multiple of 17.3, a median home sale price of $1,108,345, and a median family income of $63,944. The city outstripped even renowned pockets of unaffordability in the Americas like Manhattan and San Francisco.
“Although homes in San Francisco and Manhattan are more expensive than those in Vancouver, with median selling prices of $1,275,000 and $1,207,500, respectively, a lower median income is what makes Vancouver’s affordability index higher than that of the two U.S. cities,” the Point2 Homes report explained.
“The median home sale price has escalated way above the median family income, turning Vancouver into one of the least affordable housing markets in the world.”
Read more: More multigenerational households a consequence of price growth – report
Multiple observers have argued that Vancouver’s affordability crisis stemmed from a steady torrent of foreign investments in the real estate sector.
“This has put home ownership out of reach for many first-time buyers, pushing them out of the local market. To make matters worse, even many well-paid local professionals are finding it increasingly difficult to afford housing in their communities,” the report added.
Meanwhile, Toronto has an affordability ratio of 7.5, with a median home sale price of $471,600 and a median income of $62,624. Despite remaining the second most unaffordable market in Canada, it would still take the average household 10 years longer to complete payment for a house in Vancouver than it would in Toronto.
As a whole, Canada has a median multiple of 7.5, with the annual median family income at $64,752 and the residential property median price at $485,680. This is nearly twofold the median cost of a home in the United States ($258,300, median multiple of 4.6).
The full study can be viewed here.
Related stories:
These Canadian cities have some of the most affordable homes in North America
Home ownership declining among Canadians – census
