Vancouver remains the second-least affordable city in a group of nine selected countries for at least the fourth straight year, according to a global survey of 378 cities by Demographia.
The U.S.-based research firm uses gross median incomes and home prices to ascertain housing affordability in its 11th annual International Housing Affordability Survey. The resulting ratio defines “affordable” when housing prices are less than three times the median family income.
In Vancouver, that ratio is 10.6, second only to Hong Kong, the least affordable city with average home prices 17 times the median annual income.
Countries included in the study included Australia, Canada, the territory of Hong Kong in China, Ireland, Japan, New Zealand, Singapore, the United Kingdom and the United States.
Developed countries such as France, Germany and Russia were not included in the survey.
Vancouver has become “decoupled” from the historic relationship between incomes and housing prices, Demographia said.
According to Demographia, the least affordable cities in that group of countries, in descending order are: Hong Kong, Vancouver, Sydney, San Francisco and San Jose. Sixth place was Tweed Head in Australia, where the average home price is 9.1 times more expensive than the median annual income.
Chart source: Demographia
Demographia said the least affordable cities share one thing in common.
“Without exception, these markets have severe land use restrictions that have been associated with higher land prices and in consequence higher house prices.”
In addition to Vancouver, the three least affordable metropolitan markets in Canada were all in British Columbia: Victoria, Kelowna and the Fraser Valley.
Canada also had one city in Demographia’s most affordable listing: Moncton, New Brunswick, where the average home price is 2.2 times higher than the median annual income.
