Zoocasa
Real Estate Sold Prices
Calculator
Map
Property Trends & Insights
  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
  • Real Estate News
Zoocasa
Home Infographics

Can You Afford a Home in These BC Housing Markets?

Penelope Graham by Penelope Graham
November 8, 2018
in Infographics, Real Estate News, Vancouver Real Estate
3 min read
Can You Afford a Home in These BC Housing Markets
Share18
Tweet
Share
18 Shares

It’s no secret that real estate affordability continues to be a top concern in the province of British Columbia. Home to the nation’s priciest market – Vancouver – measures to improve supply, cool speculative price growth, and improve purchasing power are a priority among policymakers.

Related Read: How Unaffordable is the Metro Vancouver Housing Market?

In fact, too-steep housing prices are starting to be reflected in the province’s sales activity and price appreciation: according to the latest numbers from the British Columbia Real Estate Association, sales have plummeted 33.2 per cent from 2017, with the average price budging 1.1 per cent, to $685,749. The total dollar value from sales also fell 34 per cent – representing $2 billion – to $3.8 billion, a sharp contrast to the robust 30.2-per-cent increase recorded last year.

Mortgage Stress Tests a Factor

Much of this slowdown has been attributed to the federal mortgage stress test implemented in January, which requires mortgage borrowers to qualify at a rate roughly 2 per cent higher than their actual contract. That’s effectively slashed purchasing power among buyers, reducing the type and size of home they would now qualify for.

Incomes Not in Line with Home Prices

However, according to recent data compiled by Zoocasa, this is exacerbated further by a sharp misalignment between home prices, and what British Columbians actually earn. The findings, which are based on a summary of October 2018 benchmark and average home prices as reported by local real estate boards, the income required to afford the homes, and regional median incomes as reported by Statistics Canada, revealed wide income gaps in the majority of BC housing markets; buyers do not earn enough to afford the average home in a total of 16 markets across the province.

The Vancouver real estate market takes the obvious top spot for least affordable; local median annual earnings clock in at $65,327, a whopping $97,866 short of affording the average home priced at $1,196,350. In fact, there are only four BC markets where homes for sale align with local earnings: Prince George, Kamloops, Campbell River and Langford.

This gap becomes even more acute when the stress test qualification rate (currently 5.34 per cent), is factored into the calculation; doing so pushes buyers’ income gap in Vancouver into the six-figure range, at $135,169, and reduces the number of truly affordable markets to two (Prince George and Kamloops).

Check out the infographic below to see how earnings and average home prices align throughout the province of BC.

Average and benchmark home prices for each region were sourced from the Real Estate Board of Greater Vancouver, Fraser Valley Real Estate Board, Vancouver Island Real Estate Board, South Okanagan Real Estate Board, BC Northern Real Estate Board and the Canadian Real Estate Association. Home prices are from October 2018 for all regions, except for Prince George where September 2018 was the most recent price available.

The income required to afford the benchmark or average home was calculated using the Ratehub mortgage affordability calculator, assuming a 20% down payment, a mortgage rate of 3.33% and a 30-year amortization. The calculation does not include carrying costs such as heating and property taxes.

Median household incomes for each region are sourced from Statistics Canada.

zoocasa-bc-affordability-income-gap

Top 5 Least Affordable Housing Markets in British Columbia

1 – Vancouver
Median household income: $65,327
Benchmark home price: $1,196,350
Income gap: $97,866

2 – Richmond
Median household income: $65,241
Benchmark home price: $1,016,200
Income gap: $73,377

3 – Burnaby
Median household income: $64,737
Benchmark home price: $978,800
Income gap: $68,780

4 – North Vancouver
Median household income: $80,838
Benchmark home price: $1,065,500
Income gap: $64,505

5 – Coquitlam
Median household income: $74,383
Benchmark home price: $941,600
Income gap: $54,059

Top 5 Most Affordable Housing Markets in British Columbia

1 – Prince George
Median household income: $78,427
Average home price: $315,434*
Income surplus: $35,399

2 – Kamloops
Median household income: $73,822
Average home price: $406,912
Income surplus: $18,315

3 – Campbell River
Median household income: $65,086
Average home price: $436,426
Income surplus: $5,533

4 – Langford
Median household income: $80,331
Average home price: $552,431
Income surplus: $4,974

5 – Penticton
Median household income: $54,293
Average home price: $361,468*
Income gap: $9,769

* September 2018 home price
Zoocasa.com is a real estate company that combines online search tools and a full-service brokerage to empower Canadians to buy or sell their homes faster, easier and more successfully. Home buyers can browse real estate listings on the website or the free Zoocasa iOS app.

For more information about this report, please contact [email protected].

Previous Post

October Home Sales and Prices on the Rise: TREB

Next Post

How To Improve Your Credit Score Before Starting The House Hunt

Penelope Graham

Penelope Graham

Penelope Graham is the Managing Editor at Zoocasa, and has over a decade of experience covering real estate, mortgage, and personal finance topics. Her commentary on the housing market is frequently featured on both national and local media outlets including BNN Bloomberg, CBC, The Toronto Star, National Post, and The Huffington Post. When not keeping an eye on Toronto's hot housing market, she can be found brunching in one of the city's many vibrant neighbourhoods, travelling abroad, or in the dance studio.

Related Posts

Entering A Balanced Market Spells Relief for Many Buyers: CREA
Infographics

Entering A Balanced Market Spells Relief for Many Buyers: CREA

May 16, 2022
Now is the Time to Sell: Durham Cities Currently Have the Shortest Average Property Days on Market
Real Estate News

Now is the Time to Sell: Durham Cities Currently Have the Shortest Average Property Days on Market

May 12, 2022
Great News for Buyers – Home Prices are Dropping in the GTA: TRREB
Affordability

Great News for Buyers – Home Prices are Dropping in the GTA: TRREB

May 4, 2022

Blog Search

No Result
View All Result

Recent Articles

Entering A Balanced Market Spells Relief for Many Buyers: CREA

Entering A Balanced Market Spells Relief for Many Buyers: CREA

May 16, 2022
New Owner of the Cheapest Home in GTA has Big Plans for Her “250 Square Feet of Paradise”

New Owner of the Cheapest Home in GTA has Big Plans for Her “250 Square Feet of Paradise”

May 13, 2022
Now is the Time to Sell: Durham Cities Currently Have the Shortest Average Property Days on Market

Now is the Time to Sell: Durham Cities Currently Have the Shortest Average Property Days on Market

May 12, 2022
Updated: 7 Houses Under $900,000 For Sale in Mississauga

Updated: 7 Houses Under $900,000 For Sale in Mississauga

May 11, 2022
first-time home buyer programs and rebates

Featured Listings (Updated Weekly)

Updated: 7 Houses Under $900,000 For Sale in Mississauga

Updated: 7 Houses Under $900,000 For Sale in Mississauga

May 11, 2022
Hidden Gems in London, ON Currently Listed for Sale Under $540,000

Hidden Gems in London, ON Currently Listed for Sale Under $540,000

May 6, 2022
Updated: Cheapest Toronto Homes Currently Listed for Sale Under $1,000,000

Updated: Cheapest Toronto Homes Currently Listed for Sale Under $1,000,000

May 3, 2022
The Cheapest Toronto Condos Currently Listed for Sale Under $600,000

The Cheapest Toronto Condos Currently Listed for Sale Under $600,000

May 2, 2022

Social Media

Newsletter Sign-up

Join a community of 130,000+ subscribers. Don't miss important real estate news, market data, and buying and selling tips.

About Zoocasa

Zoocasa.com is a full-service brokerage that offers advanced online search tools to empower Canadians with the data and expertise they need to make more successful real estate decisions.

Newsletter Sign-up

Join 130,000+ weekly subscribers. Don’t miss important real estate news, market data, and buying and selling tips: sign-up here.

Social Media

Zoocasa Tools

MLS Listings Canada
Search Sold Listings
iOS App
Android App
Find an Agent
Contact Us

  • Homes & Real Estate Properties
  • Terms of Use
  • Privacy Policy
  • Contact Us

© 2015 - 2022 Zoocasa Realty Inc., Brokerage

  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
  • Real Estate News
No Result
View All Result

© 2015 - 2022 Zoocasa Realty Inc., Brokerage