(Black Press file photo)

20 per cent down payment means many still cannot afford to own their own home

Study finds Langford one of only four markets without a gap between required and actual income in owning a home

Earlier this week a new housing affordability study painted a grim picture for the majority of B.C. residents trying to get into the housing market.

The study found Langford to be one of just four markets including Prince George, Kamloops and Campbell River, with a positive gap between the salary required to purchase an average home and actual household incomes.

The findings are based on a summary of October 2018 benchmark and average home prices, the income required to afford the homes and regional median incomes as reported by Statistics Canada.

READ MORE: Want to buy your first home? Move to Kamloops or Prince George

But the income required to afford the benchmark or average home was calculated using the Ratehub mortgage affordability calculator, assuming a 20 per cent down payment, a mortgage rate of 3.33 per cent and a 30-year amortization. The calculation does not include carrying costs such as heating and property taxes.

The study was of 20 B.C. markets that was put together by real-estate search and data website Zoocasa, which revealed wide income gaps in the majority of B.C. housing markets.

This means buyers do not earn enough to afford the average home in a total of 16 markets across the province. But in the four deemed to have a positive gap, a 20 per cent down payment means buying a home is out of reach for many.

Top 5 Least Affordable Housing Markets in British Columbia

1 – Vancouver

Median household income: $65,327

Benchmark home price: $1,196,350

Income gap: $97,866

2 – Richmond

Median household income: $65,241

Benchmark home price: $1,016,200

Income gap: $73,377

3 – Burnaby

Median household income: $64,737

Benchmark home price: $978,800

Income gap: $68,780

4 – North Vancouver

Median household income: $80,838

Benchmark home price: $1,065,500

Income gap: $64,505

5 – Coquitlam

Median household income: $74,383

Benchmark home price: $941,600

Income gap: $54,059

Top 5 Most Affordable Housing Markets in British Columbia

1 – Prince George

Median household income: $78,427

Average home price: $315,434*

Income surplus: $35,399

2 – Kamloops

Median household income: $73,822

Average home price: $406,912

Income surplus: $18,315

3 – Campbell River

Median household income: $65,086

Average home price: $436,426

Income surplus: $5,533

4 – Langford

Median household income: $80,331

Average home price: $552,431

Income surplus: $4,974

5 – Penticton

Median household income: $54,293

Average home price: $361,468*

Income gap: $9,769

* September 2018 home price

The income required to afford the benchmark or average home was calculated using the Ratehub mortgage affordability calculator, assuming a 20 per cent down payment, a mortgage rate of 3.33 per cent and a 30-year amortization. The calculation does not include carrying costs such as heating and property taxes. 

-With files from Carmen Weld


Like us on Facebook and follow us on Twitter

Just Posted

Most Read