For Sale sign (Canadian Press files)

Want to buy your first home? Move to Kamloops or Prince George

Kamloops, Prince George, Campbell River and Langford are the only other markets in the study without gaps between required and actual income in owning a home.

A new housing affordability study is painting a grim picture for the majority of B.C. residents, where just four markets remain in reach compared to the average income.

Those four markets are Prince George, Kamloops, Campbell River and Langford, which are the only four places within the province with a positive gap between the salary required to purchase an average home and actual household incomes.

The Vancouver real estate market takes the obvious spot at the other end of the spectrum, holding top spot for the least affordable city in B.C. There, local median annual earnings clock in at $65,327, a whopping $97,866 short of affording the average home priced at $1,196,350.

That’s according to a new study of 20 B.C. Markets that was put together by real-estate search and data website Zoocasa, which revealed wide income gaps in the majority of B.C. housing markets.

This means, buyers do not earn enough to afford the average home in a total of 16 markets across the province.

The findings are based on a summary of October 2018 benchmark and average home prices, the income required to afford the homes and regional median incomes as reported by Statistics Canada.

A lack of affordability across the province comes as no surprise as B.C. is home to the nation’s priciest market – Vancouver. Measures to improve supply, cool speculative price growth and improve purchasing power are currently a priority among policymakers.

In fact, according to Zoocasa, too-steep housing prices are starting to be reflected in the province’s sales activity and price appreciation: according to the latest numbers from the British Columbia Real Estate Association, sales have plummeted 33.2 per cent from 2017, with the average price budging 1.1 per cent, decreasing to $685,749.

The total dollar value from sales also fell 34 per cent – representing $2 billion – to $3.8 billion, a sharp contrast to the robust 30.2 per cent increase recorded last year.

Much of this slowdown is being attributed to the federal mortgage stress test implemented in January, which requires mortgage borrowers to qualify at a rate roughly two per cent higher than their actual contract. That’s effectively slashed purchasing power among buyers, reducing the type and size of home they would now qualify for.

This is also exacerbated further by a sharp misalignment between home prices and what British Columbians actually earn.

This gap becomes even more acute when the current stress test qualification rate of 5.34 per cent is factored into the calculation. Doing so pushes buyers’ income gap in Vancouver into the six-figure range, at $135,169, and reduces the number of truly affordable markets to just two – Prince George and Kamloops.

Check out the infographic below to see how earnings and average home prices align throughout the province of BC.

Top 5 Least Affordable Housing Markets in British Columbia

1 – Vancouver

Median household income: $65,327

Benchmark home price: $1,196,350

Income gap: $97,866

2 – Richmond

Median household income: $65,241

Benchmark home price: $1,016,200

Income gap: $73,377

3 – Burnaby

Median household income: $64,737

Benchmark home price: $978,800

Income gap: $68,780

4 – North Vancouver

Median household income: $80,838

Benchmark home price: $1,065,500

Income gap: $64,505

5 – Coquitlam

Median household income: $74,383

Benchmark home price: $941,600

Income gap: $54,059

Top 5 Most Affordable Housing Markets in British Columbia

1 – Prince George

Median household income: $78,427

Average home price: $315,434*

Income surplus: $35,399

2 – Kamloops

Median household income: $73,822

Average home price: $406,912

Income surplus: $18,315

3 – Campbell River

Median household income: $65,086

Average home price: $436,426

Income surplus: $5,533

4 – Langford

Median household income: $80,331

Average home price: $552,431

Income surplus: $4,974

5 – Penticton

Median household income: $54,293

Average home price: $361,468*

Income gap: $9,769

* September 2018 home price – The income required to afford the benchmark or average home was calculated using the Ratehub mortgage affordability calculator, assuming a 20 per cent down payment, a mortgage rate of 3.33 per cent and a 30-year amortization. The calculation does not include carrying costs such as heating and property taxes. 

To report a typo, email:
newstips@kelownacapnews.com
.


@carmenweld
carmen.weld@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

LETTERS TO THE EDITOR: Community policing office’s closure will impact safety in the area

Strong police and bylaw presence needed in neighbourhood, say letter writers

Stolen gargoyle returns to its perch in south Nanaimo

Petey, a concrete gargoyle statue, was returned by police after City of Nanaimo crew found it

RDN Transit to see rollout of 15 new HandyDart buses

Buses will have temporary protective barriers installed to prevent spread of COVID-19

RDN says water in French Creek still potable despite levels of iron, manganese

Strategy to improve water quality being established

United Way distributes $120,000 in federal funding to seniors in need during pandemic

Salvation Army, Eden Gardens, hospice society among groups granted money

Mission prison COVID-19 outbreak ends, 9 new cases in B.C.

New positive test at Port Coquitlam care home

Beefs & Bouquets, May 27

To submit a beef or a bouquet to the Nanaimo News Bulletin, e-mail editor@nanaimobulletin.com

Man who bound, murdered Vancouver Island teen still a risk to public: parole board

Kimberly Proctor’s killer is still ‘mismanaging emotions,’ has had ‘temper tantrums’

VIDEO: Humpback whales put on quite a show

The ‘playful’ pod lingered by a Campbell River tour operator’s boat for quite some time

Facing changes together: Your community, your journalists

The COVID-19 pandemic has changed the world in ways that would have… Continue reading

Getting hitched at historic B.C. gold rush town still on table during COVID-19 pandemic

Micro-weddings, online visits, offered at Barkerville Historic Town and Park

Revelstoke woman finds welcoming letter on her Alberta-registered truck

There have been multiple reports online of vandalism to vehicles with Alberta licence plates

Spirit bear possibly spotted in West Kootenay

A local resident spotted the white-coloured bear while on an evening trail run near Castlegar on May 27

B.C. businesses ‘can’t shoulder burden’ of COVID-19 sick pay

Trudeau’s plan should be tied to federal emergency aid

Most Read