With the Median Multiple weakening from 10.6 in 2014 to 10.8 last year, the study revealed that the benchmark value for Vancouver homes is almost 11 times greater than the average national pre-tax household income, with price hikes showing no signs of stopping anytime soon.
“This represents a more than doubling from the 1st Annual Demographia International Housing Affordability Survey [12 years ago],” the study noted, as quoted by BNN News
Financial services firm UBS stated that Vancouver is one of the cities worldwide most vulnerable to a real estate bubble. In addition, Vancouver is among the five least affordable cities in Canada (four of which are in British Columbia), and the third most expensive market in the world.
Hong Kong came on top of the UBS analysis as the most costly city in the world, with average home prices running at 19 times higher than the median household income. Meanwhile, Moncton and Saint John, New Brunswick remain the most affordable markets in Canada.
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Vancouver’s dynamic housing market has seen red-hot sales over the past year, but according to the latest rankings released by U.S. research firm Demographia, the median cost of a home in the bustling city lies far beyond the reach of a significant fraction of the Canadian population.