It's in no way news to state that Vancouver home prices are insane, but according to the numbers, it's even worse than we thought. A home in the city is valued at more than nine times the average median income. This goes a long way to explaining why we are continuing to feel the pinch of expensive housing in Vancouver and it's pretty eye-opening.
On Thursday, December 5, Statistics Canada released a report on housing statistics.
It shows the gap between how much people are making and how much a home actually costs.
According to them, a home's assessment value-to-income ration was highest in B.C. — meaning that homes in this province cost way more than people's income.
In Metro Vancouver, properties are valued at nine times higher than the actual income that the homeowner is pulling in.
For single-detached houses, the numbers were even more grim with the value being a staggering 11.5 times higher than the median income of owners.
While the Statistics Canada data comes from 2018, they still go a long way to explaining some of the insane house prices we're seeing in Vancouver.
Recently, we got excited when we found out that you could buy a brand new detached house for less than $700,000 in Vancouver. That's still a lot more money than people are actually making.
This chart made out of StatsCan data shows the huge disparity between home values and income.
The difference is most obvious in Vancouver, but also Victoria and Toronto home prices are way higher than the average income.
The cost of living in Vancouver seems to only climb higher. Just to get insurance for a condo, the price is going to skyrocket to be 50% to 300% higher soon.
Even though the value of homes is way more than the actual money that people are making, Vancouver still has a ton of luxury homes on the market.
You can read all the homeownership insights on Statistics Canada online.