Millennials who live in Vancouver have the least amount of spending money left over after paying for necessities like housing and food compared to other cities in Canada, according to a Vancity Credit Union report released May 11.
The report highlights the high cost of living in Vancouver, which is hitting this demographic group particularly hard. A millennial couple (between the ages of 25 and 35) who purchased a home in Vancouver at an average cost in 2016 would be in debt $2,745 per year. A young couple in Toronto, the next lowest city on the list, would have $3,379 of extra spending money.
When Vancity broke down the cost of owning different property types, the results were slightly better: a couple who owned a townhome at an average cost in 2016 would have $3,379 left over, while a Toronto couple would be in debt $2,745. If the same couple owned a condo, in Vancouver they would have $16,422 left over, still slightly better than the condo-owning couple in Toronto. The two cities also have the lowest median income levels compared to other large Canadian cities.
Vancity report "No Funds City: Why Vancouver millennials have the lowest discretionary income in Canada"
Millennial couples with young children and the additional cost of paying for daycare would be over $17,000 debt if they owned an average property, dropping to $5,031 in debt if they owned a townhome. Young Vancouver parents are in a similar situation as those who live in Toronto, which have seen similar housing market price increases and have some of the highest daycare costs in the country.
Families who chose to rent a three-bedroom condo in Vancouver would be slightly ahead every year, but not by much, with just $771 left over. Toronto families in the same situation would be $581 in debt.
Vancouver and Toronto have the lowest median incomes in the country, but the highest housing costs. Vancity report "No Funds City: Why Vancouver millennials have the lowest discretionary income in Canada"
The Vancity report calls on policy makers to consider a suite of measures to improve housing affordability, including increasing building density, requiring developers to include affordable three-bedroom housing in new developments, programs to support moderate-income earners become homeowners, and tax credits directed to developers who build affordable housing.
