Victoria housing market 13th least affordable in the world, according to report

Dated: February 7 2019

Views: 151

Victoria housing market 13th least affordable in the world, according to report

A Demographia International report says Victoria is one of the least affordable places in the world. File photo.
A Demographia International report says Victoria is one of the least affordable places in the world. File photo.

new survey on housing affordability finds three Vancouver Island communities rank among the least affordable markets in the world.

A list compiled by Demographia International, which is in its 15th Annual housing affordability survey, basis affordability on the average housing income. Victoria is ranked 13th from the bottom, which means it is highly unaffordable. It is ahead of even Toronto and London, England.

Victoria, Nanaimo and the Comox Valley some of the least affordable housing markets in the world. (Demographia International).
Victoria, Nanaimo and the Comox Valley some of the least affordable housing markets in the world. (Demographia International).

Nanaimo is 19th least affordable, tied with the Comox Valley. Those two areas are more unaffordable than popular spots like Santa Barbara in California and Boulder in Colorado.

On the list, the Vancouver market is the second least affordable in the world, behind Hong Kong. After Vancouver are Sydney, Melbourne, Santa Cruz, San Jose and Los Angeles.

Middle-income housing affordability in Canada's major markets. (Demographia International).
Middle-income housing affordability in Canada’s major markets. (Demographia International).

The survey rates housing affordability using the “median multiple” which is the average housing price divided by the median household income in a market. A median multiple of 5.1, where the home costs five times more than the average household income, is considered “severely unaffordable. Vancouver’s median multiple is at 12.6, Victoria’s is 8.5, Nanaimo is 8.0 and the Comox Valley is 7.5.

Demographia International’s report also states that while the B.C.’s foreign buyer’s tax has been associated with moderation of house prices in Vancouver, “reductions have been concentrated in higher cost houses, with middle market housing affordability having continued some deterioration.”

Blog author image

Steven Axford

Steve is a award winning Realtor in Victoria BC, with his listings selling faster and for top dollar! Growing up in Victoria, BC and has always been active in his community. Steve is a Victoria Couga....

Latest Blog Posts

´╗┐The 2021 Victoria real estate market year in review

The 2021 Victoria real estate market year in reviewA total of 438 properties sold in the Victoria Real Estate Board region this December, 30.6 per cent fewer than the 631 properties sold in December

Read More

No change on the horizon for the Victoria real estate market

December 1, 2021  A total of 653 properties sold in the Victoria Real Estate Board region this November, 17.9 per cent fewer than the 795 properties sold in November 2020 and 12.3 per cent

Read More

A greater commitment to development required to balance local housing market

October 1, 2021  A total of 761 properties sold in the Victoria Real Estate Board region this September, 23.1 per cent fewer than the 989 properties sold in September 2020 and 8.4 per cent

Read More

CMHC says annual pace of housing starts in Canada slowed in July

OTTAWA — Canada Mortgage and Housing Corp. says the annual pace of housing starts in July fell compared with June.The national housing agency says the annual pace of starts fell to 272

Read More