Living in Greater Vancouver got more “challenging” in 2016 compared with a year before as the cost of owning a home took a significant jump, according to a new report from the Chartered Professional Accountants of British Columbia (CPABC).
Last year, the average household in the region spent 87.1% of its earnings on the cost of owning a home – a 14.5 percentage point jump compared with 2015. In Vicoria, households spent 53% of their earnings on their homes, which is a 5.5 percentage point increase.
“With the average worker earning less than $55,000 a year, it is difficult for individuals to become homeowners and maintain a decent lifestyle,” said CPABC CEO Lori Mathison. “While measures have been taken to cool the real estate market over the past year, we are still seeing a steady increase in real estate demand and prices.
“This will further impact southern B.C.’s livability.”
Home ownership wasn’t the only area that contributed to a decline in affordability. According to the report, consumer debt – which includes mortgages, credit cards and lines of credit – increased 5% across B.C. to an average of $62,395, which is the highest in Canada.
This makes British Columbians particularly vulnerable to changes in income or interest rates, Mathison said.
“Should interest rates go up or our economy see a reversal of fortunes, it will likely lead to an increase in the number of defaults and consumer insolvencies.”
@EmmaHampelBIV
