VANCOUVER (NEWS1130) – If you can’t already afford a house in region, the future isn’t looking too bright.
A new Vancity report says the average price of detached homes in Metro Vancouver will be too expensive for the average person to buy in the next 15 years.
“If the current trends continue, essentially the average person will not be able to make enough money to afford [an average home] even if they put all their salary towards servicing the debt on a home. The line crosses in 2030,” says Andy Broderick with Vancity.
By that time, the average detached home price is expected to be $2.1 million and require more than 100 per cent of the median household income to maintain.
The percentage currently stands at 76 per cent.
Homes in the rest of Metro Vancouver are also expected to chew up more than a third of the average household income which is defined as unaffordable.
“You have to have enough financial capacity not only to service the debt used by the home but you have to keep it up. You have to replace the roof, keep the heating system going and more. What you’re seeing is that as people pay more and more just for the real estate, they’ll have less and less to maintain that real estate,” adds Broderick.
Owning a new home in the whole region will pretty much be unaffordable, except for in Langley.
It’s not all doom and gloom though, Condo prices are still affordable, especially once you get outside Vancouver.