Remember when we were told that we would one day grow up, find a career, and own a home? That was a funny joke. Turns out, most millennials won’t be able to afford a home in Vancouver until they're in their 80s. According to a new study, unaffordability in Vancouver’s housing market isn’t a joke. Don’t feel bad if you still live with your parents or with a couple of roommates.
According to Zoocasa, a full-coverage brokerage, the average millennial won't be able to afford a home in Vancouver until they reach their 80s.
Not only that but also if you do find a good place, chances are you will have to work an insane amount of hours to even afford it. While our city is beautiful, it is becoming almost uninhabitable due to the high costs of housing.
The Zoocasa study consisted of analyzing 15 major urban centres across Canada. Out of 15 markets, only eight of them could be considered affordable. This is assuming that the individual was able to set aside 20% of their total income annually. Vancouver did not fall under the affordable category.
The average median income wouldn’t get far in our province, especially Vancouver. According to Zoocasa, the benchmark home price costs $993,300.
A median-income household earning is $72,662 which means a person would qualify for a mortgage of only $241,994. This leaves a shortfall of $751,306.
Zoocasa has stated that in order to afford a home, a household would need to set aside 20% of their income annually for a total of 52 years.
This means that most Millenials in Vancouver could be proud homeowners by their 80s.
Nearby, the Fraser Valley was also mentioned as being one of the steepest markets, requiring a median-income household to come up with 70% of the total purchase price of $823,3000. This would mean you are saving for 42 years.
If you’re looking for an affordable market, you might want to consider moving over a couple of provinces. The study found that Saskatchewan has some of the most affordable cities for median-income households.
Coming in at number one is Regina with the average home price of $267,900. The number two spot has been secured by Saskatoon with the average home price of $290,800.
If you want to stay in Vancouver, we understand. Thankfully, there are some homes and condos that are for sale right now that are under one million.
It’s not ideal but 50 years of saving will really pay off by the time you're in your 80s.