Vancouver has the most unaffordable real estate market in North America, according to an affordability index created by Andy Yan, director of The City Program at SFU.
The index relies on 2016 census data and determines affordability by measuring the gap between wages and housing prices in each metropolitan area.
The index lists the top 25 unaffordable housing markets out of 117 North American metropolitan areas with a population greater than 500,000 people.
Vancouver's median home price is $800,220, which is 11 times greater than the median household income of $72,662 -- ranking ahead of Los Angeles-Long Beach-Anaheim and San Jose-Sunnyvale-Santa Clara in the U.S. Toronto was the second most unaffordable metropolitan area in Canada.
Vancouver's median housing values are cheaper than Los Angeles-Long Beach-Anaheim and San Jose-Sunnyvale-Santa Clara but Vancouver's median household incomes are significantly lower.
The median household income in Metro Vancouver ranks 50th out of 51 metropolitan areas in the Canada and the U.S. -- only Columbus, Ohio had a lower median household income.
"A lot of people are aware of Vancouver's really expensive housing market but it was surprising to look at our income levels," says Yan. "When you start adding transportation and childcare costs it begins to give you a sense of total affordability in terms of household expenditures. I think that's another level to add onto this discussion."
The metropolitan area with the top median household income is San Jose-Sunnyvale-Santa Clara -- California's Silicon Valley.
He says the data is a reference point that allows people to understand the challenges of developing housing stock that is connected to local incomes and raising local incomes.
"We could create all these tech jobs [in Vancouver] but we're going to need to create them on a scale to really provide that economic foundation for our real estate market," he says.
Renters face similar affordability challenges. The 2018 Canadian Rental Housing Index reveals that 44 Vancouverites are spending over the recommended 30 per cent of their income on rent and utilities.
One in four households are spending over 50 per cent, which is considered a crisis level of overspending.
