It's common knowledge that the housing market in Vancouver is incredibly expensive, but a new report has revealed how many years it would take someone to save for a down payment on a home in the city — and it's wild.
About 37 years is needed to save up for a house in Vancouver, which is around seven years worse than Toronto, according to The National Bank of Canada's Housing Affordability Monitor.
While Vancouverites are looking at spending half of their lives putting away cash for a home, people in Calgary and Edmonton are getting by with just a few years — three to be exact. To rub it in a little bit more, people in Montreal are only having to save for a bit over four years to afford a down payment.
For major Canadian cities, The National Bank of Canada analyzed how many months are required to save for a down payment on a house, using the median home price of the local metropolitan market. It determined the number of months needed with a saving rate of 10% and a varying annual income depending on the city.
In Vancouver, you would need an annual household income of $285,078 to be able to afford the down payment on a $1,660,074 house, in 452 months (37.6 years) — and that's with the 10% saving rate.
For a $709,092 condo in Vancouver, someone with an annual income of $142,357 will have to save for 63 months (5.2 years) to afford a down payment.
Basically, for the amount of time that it takes to save for a condo down payment in Vancouver, you could save for a house down payment in Calgary, Edmonton, Montreal, Winnipeg, Quebec City, or Ottawa/Gatineau.