According to a new report, an average renter needs 17 years to save for the upfront costs of buying a home in Metro Vancouver.
The City of Vancouver is hailed as one of the most expensive places to live, but several other Metro Vancouver cities are climbing the ladder of unaffordability.
Vancouver, Richmond, Coquitlam, Burnaby, Langley, and Surrey are in the top 20 regarding average upfront costs of going from renter to homeowner, assuming a 20% down payment.
The data comes from Point2Homes.
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Upfront costs include the down payment and closing costs. Nationally, the average down payment is $142,740, with closing costs totalling around $10,500. The national benchmark price of a home is $713,000 as of January 2023.
Locally, the average annual renter income in Metro Vancouver is $73,769, and 20% of that set aside is $14,754.
Vancouver leads all BC cities for the average upfront costs of buying a home totalling $256,775. However, point2Homes suggests it would take 17 years to accumulate those savings. The average cost of the first year of homeownership in Vancouver, which also includes the annual mortgage, property taxes, and homeowners insurance is $369,051.
It’s mostly the same for Richmond, BC, although the total costs are slightly less, at $243,454. You can shave a year off in Coquitlam, where it takes 16 years to save $229,164.
While costs are generally lower in Burnaby, it would still take 15 years to accumulate $226,217, the average upfront cost of buying a home in that city.
Langley and Surrey are further down at 14 years each.
Surprisingly, Richmond Hill in Ontario is the locale where it takes the longest to save up for the upfront costs at a whopping 22 years. The average upfront costs total $304,647.
Point2Homes
On the opposite end of the spectrum, places like Saguenay, Regina, and Edmonton are some Canadian cities where the first year of home ownership is the cheapest.
To see the full national breakdown, click here.
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