Vancouver's home prices have soared 11x higher, which is absolutely difficult to afford by most of the average earner. With that expensive housing, the city is already dubbed as the 3rd least affordable housing market in the world based on a recent survey conducted.
The Canadian Real Estate Magazine reports the U.S. research firm Demographia released the latest rankings showing Vancouver homes priced 11 times more than the average national pre-tax household income. This makes Vancouver the third most expensive market worldwide, with Hong Kong on top of the list, and one of the five least affordable cities in Canada. This also makes the city the most susceptible to a real estate bubble according to financial services firm UBS.
The Business News Network adds Vancouver is actually ranked the fourth market in the world prone to a real estate bubble. Also that the Median Multiple for Vancouver has decreased from 10.6 in 2014 to 10.8 in 2015. The result of the survey doubles the 1st Annual Demographia International Housing Affordability 12 years ago. In addition, the housing prices in the city are expected to continue getting higher.
Canada's other four of the five least affordable metropolitan markets are Vancouver, Victoria, Fraser Valley and Kelowna. All of which are located in British Columbia with Toronto ranking third. The Toronto housing market has risen to 70% in comparison to the average household income.
Internationally, Sydney, Australia was the second-most high-priced market while San Jose, California was placed fourth in the rankings. Ranking eighth is London.
In contrast, Saint John and Moncton, New Brunswick is said to be Canada's top most affordable markets. Trailing these areas are Fredericton, Saguenay, Quebec, harlottetown, Trois-Rivières, Windsor, Ontario and Sudbury.
As for the United States cities, the New York state such as Rochester and Buffalo, Pennsylvania area such as Pittsburgh and Cleveland and Cincinnati for Ohio areas are said to be the most affordable markets.
What do you think about the status of the home prices in Vancouver?