Earlier this week a new housing affordability study painted a grim picture for the majority of B.C. residents trying to get into the housing market.
The study found Langford to be one of just four markets including Prince George, Kamloops and Campbell River, with a positive gap between the salary required to purchase an average home and actual household incomes.
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.
READ MORE: Want to buy your first home? Move to Kamloops or Prince George
But 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.
The study was 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. But in the four deemed to have a positive gap, a 20 per cent down payment means buying a home is out of reach for many.
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.
-With files from Carmen Weld
