Vancouver ranked fifth most unaffordable city in the world to buy a home | Daily Hive

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Buying a Vancouver home continues to be out of reach for many, and a new study reveals the extent of how expensive the market is.

A study by financial services company Remitly shows that Vancouver is the fifth least affordable city for homebuyers in the world.

It’s the only Canadian city to crack the dubious top 10 list, with the average single earner able to afford only 34.9 per cent of an average Vancouver home.

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“Buying a home is a major life goal for many people, but our findings show that in many major cities across the globe, this has slipped out of reach for average earners,” said Ryan Riley, Remitly’s VP for marketing in the EMEA and APAC regions, in a release.

“With property costs varying so significantly from city to city, it’s understandable that this will influence people’s decisions on where to live and work, particularly those with families or looking to start one.”

Remitly analyzed more than 150 global cities for its study, comparing local salaries with typical property prices.

They then applied standard mortgage criteria to discover how much of a home an average earner, as well as couples, could realistically buy.

Remitly

The study’s findings state that the average Vancouver salary of $76,081 would only be able to afford less than 35 per cent of an average property.

A couple looking to buy an average Vancouver home would only be able to afford just under 70 per cent of a typical property.

“Those wanting to settle down in the city either have to rely on large deposits, help from family, or turn to the rental market instead,” said the Remitly report.

San Jose, California, was named the most unaffordable housing market in the world, followed by three other California cities.

Three Ontario cities also made the list of the least affordable cities for homebuyers, with Toronto in 12th place, Mississauga in 13th, and Brampton ranked 15th.

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“These patterns echo our previous research on why the world wants to move, with affordability, job prospects, and quality of life all ranking as global influential factors,” added Riley. “When the financial realities differ so sharply, it becomes a central part of how people plan their next chapter.”

Remitly also announced the most affordable cities to buy a home in the world, and no Canadian cities made the list.

Things aren’t much better for Vancouver renters, as a recent report outlined that residents are spending way more than the 30 per cent rule on rent.

SingleKey’s most significant revelation is that rent and debt payments are eating over a third of Canadian residents’ incomes, and it’s worse in B.C.