11th Annual Demographia Ranking of Canada's 6 Biggest Metros 3Q 2014
Thanks to Hugh Pavletich and Wendell Cox co-authors of the Demographia International Housing Affordability Survey. This chart shows that Vancouver BC continues to rank as the least affordable city out of the 35 largest Canadian cities with a multiple of 10.6 times median household income required to buy a median priced house. As of Q3 2014 the 6 cities ranked from least to more affordable are: Vancouver 10.6, Toronto 6.5, Montreal 4.3, Calgary 4.2, Edmonton 3.9 and Ottawa 3.7. All 35 Demographia ranked cities in Canada are tabled below.
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All 35 Demographia ranked cities in Canada are tabled below
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All 35 Demographia ranked cities in Canada are tabled below.
11th Annual Demographia Price/Income Ranks of 35 Canadian Cities 3Q 2014
Affordable when under 3 ~ Severely Unaffordable when over 5 Data Source
The table below is sorted with the highest ratio of median housing cost to median household income at the top showing that Vancouver is the most unaffordable city in Canada requiring a buyer to pay 10.6 times annual income. Vancouver ranks 2nd most unaffordable city in 378 world markets after Hong Kong (1) and before Sydney AU (3).
"As a city develops, nothing is more important than maintaining mobility and housing affordability." Alain Bertaud Affordability is the ability for any urban household to be able to rent a dwelling for less than a 25% of its monthly income, or to buy one for less than about three time its yearly income. The mobility and affordability objectives are tightly related. A residential location that only allows access to only a small segment of the job market in less than an hour commuting time has not much value to households, even if it is theoretically affordable.
"As a city develops, nothing is more important than maintaining mobility and housing affordability." Alain Bertaud Affordability is the ability for any urban household to be able to rent a dwelling for less than a 25% of its monthly income, or to buy one for less than about three time its yearly income. The mobility and affordability objectives are tightly related. A residential location that only allows access to only a small segment of the job market in less than an hour commuting time has not much value to households, even if it is theoretically affordable.
Q3 2013
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DEMOGRAPHIA NOTESHouses Included: New detached homes, attached homes (townhouses and duplexes) and low-rise condominium (non-elevator) buildings are included. (Demographia Annex II, June 2010)
The Demographia International Housing Affordability Survey is unique in focusing on the middle of the market; housing affordability for average households. Further, the focus is on metropolitan markets, rather than higher-cost inner areas or expensive neighborhoods. (Demographia 3Q 2014 Page 54) The indexes and data on which the Survey is based reflect the overwhelming majority of existing housing in the markets. At the same time, there are differences in house types, housing characteristics and lot size between the geographies covered. (Demographia 3Q 2014 Page 54) Price-to-income Ratios: Uses and Misuses: The use of house price-to-income multiples (housing affordability multiples) has become more popular in recent years. While the Median Multiple has been most frequently used, other housing affordability multiples have been developed. This is appropriate, so long as parallel and consistently calculated indices are provided. This has not always been the case. (Demographia 3Q 2014 Page 54) |
Q3 2014
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January 2015 Snapshot of Canadian GDP, Productivity & Current Account Trends
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