Thursday, February 12, 2009

Vancouver Ranked Fourth Least Affordable City in the World

Vancouver Ranked Fourth Least Affordable City in the World
(CEP News – Stephen Huebl)

The economic downturn may be taking a toll on real estate across Canada, but prices in Vancouver remain "severely unaffordable", according to a list of the world's least affordable cities. Vancouver ranked fourth on the Demographia International Housing Affordability Survey, with average house prices at 8.4 times the median income. That means it would take 8.4 years on an average income to purchase a home there. Compare that to Canada's average median of 3.5.

The city was ranked behind Australia's Sunshine coast, which was listed as the world's least affordable place to live. Hawaii's capital Honolulu ranked second, while Australia's Gold Coast came in third.

All of Canada's "severely unaffordable" markets are located in British Columbia, with Victoria ranked number seven, Kelowna at 19 and Abbotsford at 25.

The New York-based Demographia survey, the fifth annual edition, was compiled from third-quarter data in 265 metropolitan markets around the world.

The survey found 87 "affordable" markets, with 77 in the U.S. and ten in Canada. Canada's most affordable housing market is in Cape Breton, Nova Scotia, where the median house price is just 2.1 times the median income. Other affordable markets are Thunder Bay, ranked 12th, and Windsor and Chatham, both ranked 17th.

Commentary: Report says it all. I always knew I came from the most affordable part of Canada. Too bad it doesn't afford enough jobs. Look at that Cape Breton - the best singers and most affordable place in Canada.

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