An annual housing affordability report from Demographia ranks Hong Kong as the most expensive, the same as last year; but Vancouver has slipped to third with Sydney, Australia taking the second-place spot. The Californian markets of Santa Cruz and Santa Barbara complete the top 5.
Vancouver’s median priced home would cost a median income earner 11.8 times their income, up from 10.8 times a year ago. Toronto is at number 28 in the listings with an income multiple of 7.7.
The study talks of the rapid deterioration of the health of the housing markets in Vancouver and Toronto, based on 2016 figures. Nationally, the 4.7 income multiple for major markets is deemed “severely unaffordable” and for all housing markets the ratio is 3.9.
Among 40 markets, 10 are deemed affordable, 13 moderately unaffordable, 10 are seriously unaffordable and 7 are severely unaffordable.
The most affordable market is Moncton with a 2.2 income multiple with Ottawa-Gatineau leading affordability for major markets with a 3.9 income multiple, however it is still ranked as moderately unaffordable for middle-earners.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate
Vancouver remains in the top three most expensive cities to own a home for middle-income earners.