Calgary ranked ‘seriously unaffordable’ in global housing study
Calgary was dubbed “seriously unaffordable” in a new housing affordability study from a California-based university.
Chapman University looked at housing affordability in 95 major markets across eight nations: Australia, Canada, China, Ireland, New Zealand, Singapore, the United Kingdom, and the United States.
The study uses a median price-to-income ratio, or the median multiple, to determine the level of unaffordability in respective markets. The study has several different grades of unaffordability based on the median multiple:
- Affordable (3.0 and under)
- Moderately unaffordable (3.1 to 4.0)
- Seriously unaffordable (4.1 to 5.0)
- Severely unaffordable (5.1 to 8.9)
- Impossibly unaffordable (9.o and above)
Calgary scored a median multiple of 4.8. This means that the median house price is nearly five times more than the median income of someone working in Calgary, placing the city in the “seriously unaffordable” category.
LisaBourgeault/Shutterstock
In comparison, Edmonton received a median multiple of 3.7, making it the most affordable Canadian market covered in the study. Chapman also notes that “both Edmonton and Calgary could see improved economic growth as a result of increasing fossil fuel demand and increased pipeline capacity.”
Canada as a whole came in with a median multiple of 5.4, with three of six measured markets being noted as “severely unaffordable or impossibly unaffordable.”
Chapman points to prices surging in the 1990s, especially in “markets governed by urban containment strategies.” According to the study, since the mid-2000s, there’s been a considerable loss of housing affordability in Canada, with Vancouver and Toronto being hit the hardest.
Chapman’s study suggests New Zealand might have the key to fixing the housing crisis in major global markets.
- You might also like:
- These are the 10 most expensive neighbourhoods in Calgary right now
- Calgary home sales have cooled so much a big milestone was just hit
- Calgary Flames' Lomberg launches heartwarming initiative for children of first responders
“Counterurbanization is one cause for some optimism on housing affordability. New Zealand’s recently enacted housing reforms are another,” it says.
“The New Zealand government has adopted a program that should lead to much
lower suburban and exurban land prices, leading to materially improved housing affordability. Similar models should be implemented in housing markets around the world.
“These reforms should be a template for policies that, along with migration patterns, could augur in a period of price stability.”
While cheaper than Vancouver and Toronto, the findings show Calgary is still facing the same affordability pressures as other major Canadian cities.
With files from Amir Ali