New stats were recently released suggesting that the average rent in Vancouver is close to $3,000 for a two bedroom, and including utilities it would take a yearly income well over $50,000 to be able to afford a 1 or 2 bedroom apartment in Vancouver.
Mind you, this is because the affordability rate has commonly been determined by finance experts to be somewhere around 30% of an individual’s gross income. This is how individuals have been told to assess whether or not they might be able to afford where they are renting, if they are paying more than 30% then that can easily turn into a problem.
Housing Affordability in Canada
Around Canada there are many people who are paying more than 30% of their income on rent alone in places like Vancouver, Toronto, but in other Canadian cities too.
Kelowna has been deemed one of the least affordable places in Canada previously, and throughout the Central Okanagan residents would need an income upwards of $52k to afford something to live comfortably.
A number of people in this area of BC too have been found to be paying more than 30% on their rent as well. It isn’t just Vancouver and the Lower Mainland that are suffering from this problem of rent affordability.
The minimum wage in BC is $15.65 and a full-time job would mean around $30,000+ and according to ZipRecruiter the average salary in BC is around $65,000 per hour.
But there are many who are making less than this and even families where two full time working individuals are struggling to get by, trying to tackle high rent prices. It isn’t only rent either with high costs in other areas too as inflation pushing prices higher at the grocery store and more.
The median household income around Canada was roughly $62,900 back in 2019.
Vancouver has been ranked one of the most expensive cities to live in the world. Millions of Canadians have already given up on the dream of someday owning a home at these prices.
The Most Expensive Real Estate in Canada
More recently, Toronto also took the title as the most expensive in Canada. For many Canadians who can only dream of owning their own home at some point, this bloated market isn’t something that they are proud of. Affordability is one of the top issues for Canadian voters.
One previous study showed that investors and repeat buyers are making up an increasing portion of the real estate market in Canada.
For young couples in Canada who have been able to get their own homes already despite the high prices, previous reports show they too have had significant help from their families in many cases in order to be able to do it.
The average down payment gift has been over $100k. For a number of Canadians though they’ve had to start looking elsewhere if they want more affordability and that has meant some families already leaving the Vancouver area because of those affordability issues.
We can expect this will only grow as a political issue if things continue to deteriorate and the standard of living gets most costly for Canadians.