From the article:
The National Bank of Canada (BoC) has revealed how much it’ll cost you to save for a home in the most expensive city in Canada.
The report, which almost translates to satire with how ridiculous some of the numbers are, is part of the latest Housing Affordability Monitor from the BoC.
One of the key takeaways is that if you’re making $322,245 CAD [$242,000 USD] annually, it will take Vancouver residents approximately 454 months, or nearly 38 years, to save for the required down payment with a saving rate of 10%.
That means if you’re 28 today, you’ll have your home by age 66.
SweatyTax4669 says
Is that accounting for avocado toast and fancy Tim Horton’s coffees?
mrbbrj says
Where can Mcdonald workers live
cursedbones says
People not affording housing is becoming a trend worldwide. I’m not sure how this is gonna end but a infinite rising of prices can to possibly happen.
Housing should be a humans rights not a target of speculation and way to make rich people richer.
IPwithMikeHawk says
My wife and I have an total income of 300k in Vancouver and we would not be able to afford buying a single detached.
But we have a single detached now, because you don’t simply buy a detached house as your first property. We bought a condo first, which goes up in price along with houses, then we sold the condo after 5 years, which gave up enough money for the single detached down payment.
Vancouver market is still total BS though.
myeff says
This article doesn’t make sense to me. First, they say it will take 38 years to save for a *down payment* on a house if you are making $322,245 a year and saving 10 percent. $322,245 x .10 x 38 = $1,224,531, and the average price of a home is $1,587.439. So it seems you would be approaching the full price of the home, not a down payment. And almost nobody pays cash for a home, they finance it.
Please correct me if I’m wrong; my math isn’t good when I’m at my best, and I’ve had a couple beers.
Chroderos says
Not to say there aren’t many contributing factors that could be controlled, but it’s one of, if not the highest, QOL cities on the planet. Definitely not going to come cheap these days, and probably not realistically attainable to anyone but wealthy retirees, trust fund kids, and loaded foreign investors.
ChibiSailorMercury says
At this point, who is the city for?
If most people can’t afford to live there, it means a portion of these people can’t afford to work there, and at some point, we should just give up on cities where a 300K+ income is not enough to buy a roof.
redditmarks_markII says
Housing is ridiculously expensive in Vancouver. But there’s probably problems with taking just three numbers out of the BoC report. I don’t pretend to understand it, but for example, the title info is as follows ([all info from doc linked in article](https://www.nbc.ca/content/dam/bnc/taux-analyses/analyse-eco/logement/housing-affordability.pdf)):
– household income: 322,245CAD
– representative home price: 1,587,439CAD
– months to save: 454
another city is as follows:
– household income: 219,514CAD
– representative home price: 933,437CAD
– months to save: 93
for ease of understanding my confusion, here’s the relative numbers of the cheaper city to the more expensive one:
– household income: 68%
– representative home price: 58%
– months to save: 20%
So, it takes a fifth of the time for a family making < 2/3 of the other, to by a home costing > 2/3 of the other. At the same saving rate(10%). What?
I’m not saying it’s wrong, I’m saying just looking at a few numbers doesn’t explain what the report is trying to explain.
restore_democracy says
So even if you believe that they need to save up a $300k down payment to buy a house, what is the math that tells you that if you’re saving $30k/year it will take you 38 years to get to $300k?
nyrB2 says
it would have been helpful if they’d said what the down payment figure actually *is*.
AlThePaca7 says
Math does not check out.
I am from the USA though. Do you need 20% in Canada? Can you not buy st 5%?