DATE

Downtown Vancouver Peninsula

Incomes Fail To Keep Pace With Rising Home Prices

Steve Saretsky -

Median Family Income In Metro Vancouver Just $72,000

As first reported in the Vancouver Sun, new census data highlights just how out of whack housing prices have become from local incomes. The median total income for households in Metro Vancouver was a paltry $72,662.

Despite Vancouver having the priciest real estate by a long shot, incomes were only the 15th highest across the country.

Median Income In Downtown Vancouver $89,825.53

Using an interactive chart via Better Dwelling, the median household income in the Downtown peninsula was $89,825.53. Still a stretch considering the median condo price this year sits at $749,500. Costing you an average of $1051.41/ per square foot.

Here’s how it looks from a monthly carrying costs perspective. Assuming a 20% down payment, with a 3% mortgage interest rate over 25 years.

[table id=42 /]

Therefor based on today’s incomes it would cost about 44% of your pre tax income for a Downtown Vancouver condo. Keep in mind this does not included maintenance or extra insurance.

As per CMHC, they quantify affordable housing as no more than 33% of your pre tax income.

There’s no doubt Vancouver is an equity driven market, with local incomes having been detached from house prices a long time ago. That gap continues to widen with massive inflation in home prices and anemic wage growth.

Join Thousands On My Weekly Vancouver Real Estate Round-Up

 

 

Join the Monday Newsletter

Every Monday morning you'll receive a short and entertaining round-up of news on the Vancouver & Canadian Real Estate markets.

"*" indicates required fields

The Canadian Economy

Steve Saretsky -

Happy Monday Morning! We got a string of new data this past week confirming inflation in consumer goods, and housing are proving to be more than transitory. Canada’s consumer price index continued to drift higher with prices hitting an 18 year high, up 4.7% from last October. The recent floods in BC...

Steve Saretsky -

The calls for impending interest rate hikes continues. CIBC’s chief economist, Benjamin Tal, was out recently suggesting the Bank of Canada could hike its benchmark interest rate at least six times beginning in early 2022. “I think there is a risk of getting into the market at today’s rates,” noted Tal....

Steve Saretsky -

The BC Government announced it is looking at several cooling measures for the housing market in 2022. They have highlighted two measures. The first is an end to the blind bidding process, and the other is a mandatory “cooling off period” which will allow any buyer a 7 day recession...

Steve Saretsky -

The Bank of Canada continues to slowly drain liquidity after flooding the system with a firehose of cash during the pandemic. Bank of Canada governor Tiff Macklem announced the end of Canada’s QE program (also known as money printing). Furthermore, in Macklems words, “We expect to begin increasing our policy...

Steve Saretsky -

Consumer price inflation ripped higher in September, surging 4.4% year-over-year, the fastest pace of price increases in 18 years. Let’s discuss this further. We have an inflation problem and the Bank of Canada remains of the view that inflation will be transitory. Although they really can’t say otherwise, for if...

Get the Saretsky Report to your email every month

The Saretsky Report. December 2022