It’s yet another story where we crush your dreams by reminding you how much income you need to afford to buy the average home in Vancouver.
The answer? Waaaay above average.
Vancouver leads Canada in the required annual income needed to buy what Ratehub.ca calls an average home.
“This was a terrible year for home affordability in Canada,” Ratehub co-CEO James Laird said.
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From January to December last year, the income required to purchase the average Vancouver home increased by $24,600. In January 2023, the needed income was $212,800; by December, it was $237,400.
Ratehub unsurprisingly calls Vancouver the most challenging market.
“In December 2023, the average prices for home types in Vancouver were as follows: Detached homes: $1,964,400 (+7.7% on an annual basis, -0.9% from November 2023) Apartment homes: $751,300 (+5.6% on an annual basis, -1.5% from November 2023),” Ratehub states.
The December number is based on an 8.16% stress test rate and a mortgage rate of 6.16%.
The average income in Vancouver varies depending on your source. Zip Recruiter, a popular job recruitment agency, suggests that, as of December 2023, the average Vancouver salary is $69,513, leaving you around $167,000 short of the income needed to buy a home.
As of 2022, the BC government suggested that British Columbians working full-time earned an average weekly wage of $1,371.30. It also said that the median family income in BC was $99,610, still well short of the average income required to purchase a Vancouver home.
The situation in other BC cities isn’t quite as bad, but home prices still far outpace average income elsewhere in the country.
In Victoria, for example, the average income required to purchase a home as of December last year was $178,250.
Calgary saw the second biggest jump in income required, at $14,770 more in December 2023 than January of the same year.
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