Real estate platform Point2 Homes determined the housing affordability levels of the 50 most populous cities in North America, by looking at the home price to income ratio, also known as the median multiple. Based on the ratings created by the International Housing Affordability Survey, a median multiple of 5.1 and over is considered “severely unaffordable”. Vancouver breaks the record for the most unaffordable housing market, with an extreme median multiple of 17.3, higher than Manhattan’s 15.6.
Even though the median home sale price in Manhattan ($1,207,500 USD) exceeds that in Vancouver ($1,108,345 USD), a lower income makes Vancouver’s median multiple much higher than that of this U.S. market.
On a national level, if one were to spend their entire earnings on their mortgage, it would take 10 years longer to pay off a house in Vancouver than it would in Toronto, Canada’s second most unaffordable market.
Based on the study, Ottawa, Edmonton and Calgary are more attractive Canadian housing markets, with salaries way above the national median and advantageous home sale prices. Winnipeg ranks as the nation’s winner in terms of housing affordability, with a median multiple of 3.4.
The full study, with details on all the 50 cities, can be found here: https://www.point2homes.com/news/canada-real-estate/housing-affordability-north-america.html
‘Looking into the housing affordability topic, we were expecting a high imbalance for Vancouver, but what was a complete surprise for us was the huge difference between where severely unaffordable starts, at 5.1, and Vancouver’s outstanding 17.3 median multiple.’ said Matthew Haines, Vice President of Point2.
About Point2 Homes: Point2 Homes is a real estate marketplace owned and operated by Point2, a leading provider of real estate marketing solutions. It supports home searches in Canada, the US, and many international locations.