Boomers may not enjoy hearing it, but young and single people in BC are struggling with the reality of homeownership, and some new numbers show that keeping up with rising costs is becoming increasingly difficult.
There’s also a generational gap, with folks in a slightly older age bracket receiving a bit more of a break on their payments, but we’ll get more into that in a minute.
The numbers come from a new report from Vancity that suggests that since 2018, the average monthly household income of Vancity members increased by 27%, reaching $13,300 in 2024. During the same period, monthly mortgage payments surged by 53%, climbing to $3,400, effectively outpacing income growth.
The solution isn’t as simple as not buying so many lattes.
“Data highlighted in the report is a sobering reminder of Canada’s housing crisis,” Vancity says.
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A generational gap
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Vancity points out that the average monthly income of Vancity mortgage holders varies greatly depending on age group.
Folks aged 43 to 58 earn an average of $14,400 per month, compared to folks aged 19 to 30, who earn around $11,800 monthly. Vancity says this highlights “a stark income disparity between younger and older buyers.”
There has also been quite a change in down payments in 2018 versus 2024. For buyers aged 19 to 42, the average down payment in 2024 was $287,300, marking a whopping 37% increase compared to 2018.
“For first-time buyers, the average down payment rose by 20%, reaching $179,000 in 2024,” Vancity states. Vancity also highlights the need and dependence on another prominent reality for many BC residents: family wealth.
Vancity cites Statistics Canada numbers that indicate over 20% of residential properties owned by people born in the 1990s were co-owned with their parents, “fueling the growth of an ‘inheritocracy’ where family wealth plays a significant role in accessing homeownership.
Yesterday, we published a story about a young BC resident dealing with the same reality, wondering if he should wait for an inheritance instead of working hard and barely getting ahead.
Other parts of the report discuss more common realities regarding combatting the high cost of housing in the province. Vancity states Canadians are finding creative solutions to combat rising housing costs, like dependence on rental income.
A total of 12% of new homebuyers are renting out portions of their new property to help offset the rising costs. Extended mortgage amortization is another tool in the BC homeownership tool belt.
“In late 2022, 53% of Vancity members extended their mortgage amortization, a significant increase from less than 20% in 2018, likely in an effort to ease short-term financial strain.”
Vancity adds that owning a home isn’t the only path to wealth and financial stability.
“There are alternatives such as investing in the market or considering stable, affordable living arrangements like housing co-operatives, which provide a sustainable way to secure long-term housing while building wealth.”