A new report is out that matches up annual income with local real estate prices across B.C.
According to Zoocasa, the average income of British Columbians is a stark contrast to the average price of homes in most of the province.
Their report compared a summary of average home prices in 20 B.C. markets, with the average income required to afford a home and each city’s median income.
The results revealed a large gap between the median income and the average home prices, with only four BC markets showing alignment between income and home price.
Prince George, Kamloops, Campbell River and Langford are considered affordable, while the Lower Mainland displayed the largest gap between average income and home price.
The report suggests that B.C.’s plummeting home sales (down 33% since 2017) can be attributed in part to the gap between income and real estate prices.
New federal mortgage stress tests are also highlighted for the downfall in sales, with potential buyers being unable to even qualify for mortgages due to a large income gap.
When the stress test mortgage qualification rate is applied to the income versus home price gap, only Prince George and Kamloops came as truly affordable markets.