Vancouver Island housing markets world-class in their unaffordability

Dated: January 31 2019

Views: 59

Black Press file photo

Vancouver Island housing markets world-class in their unaffordability

Victoria, Nanaimo, Comox Valley among 20 least affordable in survey of Canada, US, UK and more

Want to live on Vancouver Island?

Be prepared to pay for it.

A recent study has ranked a trio of Island communities as among the most unaffordable housing markets in North America and beyond.

The 15th Annual Demographia International Housing Affordability Survey covers 309 metropolitan housing markets (metropolitan areas) in eight countries (Australia, Canada, Hong Kong, Ireland, New Zealand, Singapore, the United Kingdom and the United States) for the third quarter of 2018.

Victoria (13th), Nanaimo (19th) and the Comox Valley (20th) all rank among the worst. You’d have better luck affording a home in Victoria than in Honolulu, but just barely. Miami? Seattle? New York? All more affordable than Nanaimo and the Comox Valley.

The survey calculates communities’ level of affordability by dividing the median house price by the median annual gross household income before tax. This is a widely used method for evaluating housing prices. Communities are given a numerical rating, called the median multiple, with anything 3.0 and under considered affordable and anything 5.1 and over considered severely unaffordable.

The Comox Valley has a median multiple of 7.9, just below Nanaimo (8.0), the Fraser Valley (8.2), Victoria (8.5) and Vancouver (12.6). Other B.C. communities rated severely unaffordable are Kelowna (7.0) and Chilliwack (6.7).

Courtenay Mayor Bob Wells says the Comox Valley continues to be a very desirable place to live and this is unfortunately reflected in the difficult housing prices.

“Houses over the last 15 years have gone up by four times their value when you look at their assessments and yet obviously wages haven’t necessarily gone up by four times,” he said. “That certainly brings a lot of pressure to bear.”

He adds there are many people who retire in the Comox Valley and questions what effect this has on the household income calculation in the study.

Roger Kishi, director of homeless & housing programs for the Comox Valley’s Wachiay Friendship Centre, says the results of the study are consistent with what he has been seeing.

According to the 2018 Vital Signs Report, 45.4 per cent of renters spent more than 30 per cent of their income on housing, whereas 20 per cent spent more than 50 per cent of their income on housing.

Kishi says there is work being done to alleviate the housing strain, but vacancy rates are still very low and housing costs continue to soar.

“We’re already in such a deep pit that filling it in and trying to get even to a level place is gonna take a lot of resources,” he said.

RELATED: Courtenay supportive housing complex under construction

RELATED: A supported adult housing complex is under construction in Courtenay

Canada as a whole has a moderately unaffordable rating of 4.0 with Edmonton being the most affordable major market in the country with a rating of 3.6.

Vancouver’s 12.6 median multiple makes it the second most unaffordable market in the world, trailing only behind Hong Kong which has a median multiple of 20.9. Sidney and Melbourne Australia, and Santa Cruz California round out the bottom five. Cape Breton Nova Scotia and Fort McMurray Alberta were the most affordable markets in the survey.

Blog author image

Steven Axford

Steve Axford grew up in Victoria, BC and has always been active in his community. Steve is a Victoria Cougars Hockey Team alumni as well as a Victoria Shamrocks (intermediate) alumni. During his time....

Latest Blog Posts

Choosing Flooring: 6 Things You Need to Know

When it comes to choosing new flooring for your home or apartment, the options can be overwhelming. Almost every type of flooring has some sort of advantage over other kinds, and taking in all the

Read More

Consumer interest in homeownership in Victoria unwavering over course of pandemic

A total of 989 properties sold in the Victoria Real Estate Board region this September, 60.6 per cent more than the 616 properties sold in September 2019 and 1 per cent more than the previous month

Read More

Understanding Canada’s Record Home Sales Last Month, And Why It’s Likely To Continue

Canada’s late Spring real estate market continues, but some of the pent-up demand has caught up. Canadian Real Estate Association (CREA) data show a new all-time record for August

Read More

Victoria real estate market experiences an active summer

A total of 979 properties sold in the Victoria Real Estate Board region this August, 48.1 per cent more than the 661 properties sold in August 2019 and exactly the same total as the previous month

Read More