By now, everyone is probably familiar with the annual Demographia Housing Affordability Survey. In last year’s report, Vancouver — with a house price to income ratio of 10.6 — had the second worst affordability behind only Hong Kong.
But the numbers they used to arrive at that multiple are now a year old. How has the picture changed since then, and what is the current ratio? The median house price then was $704,800 and the median household income was $66,400.
According to the latest REBGV numbers, house prices in Greater Vancouver have increase 20.1% in the last year. And BC Stats reports that average earnings are up 3.8%.
Applying those increases to last year’s Demographia data, we can estimate that the new median house price is about $846,500, and median household income is now around $68,900.
If these numbers are accurate, then the median multiple for Vancouver is now 12.3 — higher than any US market at the peak of their bubble.
This is the new North American record for poor affordability. Congratulations Vancouver.