$300K earners in Vancouver need 38 years to save up for a home

In another reminder of why the Bank of Mom and Dad is so important in Vancouver, the National Bank of Canada (BoC) has revealed how much it’ll cost you to save for a home in the most expensive city in Canada.

The report, which almost translates to satire with how ridiculous some of the numbers are, is part of the latest Housing Affordability Monitor from the BoC.

One of the key takeaways is that if you’re making $322,245 annually, it will take Vancouver residents approximately 454 months, or nearly 38 years, to save for the required down payment with a saving rate of 10%.

That means if you’re 28 today, you’ll have your home by age 66.

See? It sounds like satire, but here’s what else the report says.

The absurd 38-year figure is for those looking to purchase a non-condo home based on a representative market price of $1,587.439.

So, saving for a condo might be a more realistic option.

BoC says condo hopefuls need to save for 67 months, closer to six years, based on a condo with a representative market price of $721,230. The household income required to achieve that goal in 67 months is $171,052.

Even though these odds seem insurmountable, BoC says that affordability in Greater Vancouver improved in the first quarter of 2023. Still, it doesn’t move the needle very far for most Vancouverites looking to purchase a home, and BoC still calls Vancouver the least affordable Canadian city to buy a home in.

Despite the improved first quarter, compared to last year’s report, it’ll take Vancouver residents an extra two months to save for a non-condo home and an additional four months to buy a condo, which is with lowered salary expectations.

Think you’ll ever buy a home in Vancouver?