Greater Vancouver home prices have increased by 1010% since 1980, but income is only 43%

Greater Vancouver home prices have increased by 1010% since 1980, but income is only 43%

Housing affordability deteriorated to its worst level in over 30 years. Not since 1991 has the Housing Affordability Index looked so grim. The data shows a household must now devote 42.8% of its disposable income to housing – and for anyone living in Greater Vancouver and having recently purchased a home, this is not just a stat – you are living this number every month. The Index measures the share of income needed for housing costs such as mortgage payments and utilities but excludes property taxes. That makes no sense! The National Bank of Canada tracks all mortgage all carrying costs. It states that it would take more than 50% of the average family’s income in Canada’s main urban centres to sustain the home owners carrying costs. How the heck do you ever save for retirement in this equation?

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