Vancouver Named 'Impossibly Unaffordable' Again: What It Means for Your Housing Costs

Vancouver Named 'Impossibly Unaffordable' Again: What It Means for Your Housing Costs

If you live in Vancouver or are thinking about moving to British Columbia, here is the key takeaway: your housing costs are likely to stay very high, and the problem is spreading to smaller cities. A new report ranks Vancouver as the 92nd least affordable housing market out of 96 major cities worldwide. Only Hong Kong, Sydney, San Jose, and Adelaide are worse.

What the Numbers Mean for You

The report, from the Chapman Center for Demographics and Policy and co-published by the Canadian Frontier Centre for Public Policy, uses a "median multiple" to measure affordability. This compares the median home price to the median household income.

• Vancouver's median multiple is 10.8. This means a typical home costs nearly 11 times the typical household income.
• Toronto is Canada's second least affordable market, ranking 81st globally.
• Edmonton is the most affordable Canadian city and is among the top three most affordable cities worldwide.

The Crisis Is Spreading Beyond Vancouver

The report shows that housing unaffordability is no longer just a Vancouver problem. Smaller B.C. markets like Chilliwack, Kelowna, and cities on Vancouver Island are getting hit hard.

From 2015 to 2023, affordability in these smaller markets worsened by the equivalent of 2.5 years of median household income. That is a bigger drop than Vancouver's 1.2 years. This means Canadians in once-affordable regions are now facing severe housing cost pressures, affecting their ability to save, invest, or even afford rent.

Who Is Affected

• Current Vancouver homeowners: Your home value may stay high, but selling and buying elsewhere in B.C. is becoming harder.
• Renters in Vancouver and surrounding cities: Expect rents to remain high as homeownership becomes out of reach for many.
• First-time homebuyers: You may need to look outside B.C. or adjust your expectations significantly.
• People considering moving to B.C.: The cost of living, especially housing, is a major barrier.
• Residents of smaller B.C. cities like Chilliwack and Kelowna: Your local housing market is now under severe pressure, too.

What You Should Do

1. Reassess your housing budget. If you live in Vancouver or a surrounding city, use the median multiple as a guide. If your household income is $100,000, a typical home would cost $1.08 million. Can you realistically afford that?
2. Consider more affordable options. Edmonton is Canada's most affordable major city. Other cities like Calgary, Winnipeg, or even smaller towns in other provinces may offer better value.
3. Stay informed about local housing policies. Watch for changes in zoning, rental controls, or development fees that could affect supply and prices.
4. Consult a financial advisor. A professional can help you navigate these challenging market conditions and create a realistic plan for buying or renting.
5. If you are renting, lock in a longer lease if possible. This can protect you from sudden rent increases in a tight market.

Bottom Line

Vancouver remains one of the most unaffordable housing markets in the world, and the crisis is now spreading to smaller B.C. cities like Chilliwack and Kelowna. If you live in or are considering moving to B.C., you need to carefully assess your housing budget. Exploring more affordable cities like Edmonton or other regions may be your best path to homeownership or lower rent. Stay informed and seek professional advice to make the best decision for your financial future.