Vancouver is known for having incredibly expensive housing, and a new report just confirmed it. If you thought Vancouver housing prices were bad compared to the rest of Canada (except for Toronto), wait until you read this new report that was released today. Vancouver was officially ranked one of the worst housing markets in the whole world, according to the Demographia Housing Affordability Survey's latest report.
The Demographia Housing Affordability Survey released their 15th annual report on global housing affordability for 2019 on Monday, January 21, according to Burnaby Now. Vancouver came out almost dead last out of 309 cities. The city was ranked the "second-least affordable" global housing market.
Vancouver ranked even worse than last year. "Vancouver displaced Sydney as the second least affordable major housing market", read the report. "Sydney now ranks third least affordable". The only city to beat out Vancouver for dead last was Hong Kong.
The report highlights several reasons for the high costs of Vancouver housing. "According to the 2018 Third Quarter Canada Mortgage and Housing Corporation (CMHC) assessment: 'Housing markets for Vancouver, Victoria, Toronto and Hamilton remain highly vulnerable because of the detection of price acceleration and overvaluation," reads the report.
"Most notably, high evidence of overvaluation is still observed in Vancouver, Victoria and Toronto, where house prices remain higher than levels supported by economic and demographic fundamentals".
However, that's not all. Vancouver's housing affordability score is one of the worst scores the report has seen in its 15-year history of being annually published. "Vancouver has the second least affordable housing among the major markets, with a Median Multiple of 12.6, trailing only Hong Kong," reads the report.
"This is the third worst housing affordability for a major market in the 15 years of the Demographia International Housing Affordability Survey. Vancouver also was rated as "having the fourth worst housing "bubble risk" in the world", according to the report.
These new findings may not come as a surprise to several Canadians, especially the many Vancouverites who have experienced the struggle of finding affordable housing in the city. The city has the highest housing prices in all of Canada and many people have had to move away from Vancouver due to the high costs of living.
To read the full 2019 annual report from Demographia Housing Affordability Survey, you can visit their website.