Greater Victoria is the 16th least affordable city of 309 cities surveyed across the world. (Twitter/Greater Victoria Harbour Authority)

Victoria ranks as 16th least affordable city in the world

Vancouver, as well as the Fraser Valley, Nanaimo and Comox Valley also crack the Top 25

A survey tracking global housing affordability shows Greater Victoria is the 16th most unaffordable housing market in eight major countries.

The 16th Annual Demographia International Housing Affordability Survey ranks Victoria in 294th place out of 309 housing markets in eight countries across Asia, North America and Europe in terms of affordability (as of the third quarter of 2019). Hong Kong is the least affordable and Vancouver the second-least affordable market.

The survey tracks middle-income housing affordability and ranks markets by the ‘Median Multiple,’ the median house price divided by the median household income. The higher the multiple, the greater the gap between the cost of housing and income. The survey considers housing affordable if the median multiple is three or less.

RELATED: Assessments down across most of Greater Victoria as real estate market softens

RELATED: More than 7,200 properties sold in Greater Victoria in 2019

Looking at the big picture, the survey has found a “moderation” of house price increases in some of the least affordable major markets. “However, the trends were insufficient to materially improve housing affordability,” it reads.

Looking at Canada, its median multiple for 50 markets is 4.4 — or “seriously unaffordable.” By comparison, Greater Victoria’s median multiple is 8.1 (or “severely unaffordable”), a figure that makes the region more affordable than Greater London (15th) and Toronto (7th) among others but also more expensive than Honolulu. Notably, three other B.C. locals crack the Top 25 when it comes to unaffordability — the Fraser Valley (20th), Nanaimo (21st) and Comox Valley (22nd).

Vancouver’s median multiple is 11.9, while Hong Kong’s is 20.8.

The report finds that middle-income households “have been largely priced” out of the median price housing by spiraling cost increases across Australia, the United States and Canada.

As such, the report finds that escalating housing prices represent a direct threat to the historical trends that have created the so-called middle class across North America, Europe and parts of Asia.

“These higher housing costs are a threat to the middle-income lifestyle, because they reduce discretionary income and thus, the standard of living,” it reads.

One notable Canadian element found in the study concerns the list of the 10 most affordable markets.

They include three Canadian cities, led by Alberta’s Fort McMurray, with a median multiple of 1.8.

“Fort MacMurray has suffered serious economic disruption as a result of petroleum market developments and product transport shortages,” it reads. Two other Canadian markets also crack the Top 10, Fredericton, N.B. and Saint John, N.B.


Like us on Facebook and follow @wolfgang_depner

wolfgang.depner@peninsulanewsreview.com

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Save-On-Foods signage appears at Colwood Corners

Development expected to achieve occupancy in 2021

Oak Bay, Esquimalt firefighters headed up the big climb Sunday

Oak Bay firefighter joins former Esquimalt assistant chief for 48-storey stair climb

Development will bring 77 new homes to Colwood

Developers preparing land for six-storey, four-storey and two three-storey buildings on Sooke Road

Kids learn the ropes of business with free UVic entreprenuership training

The second annual Kidovate program is now open for registration

VIDEO: Behind the scenes of turning newspapers into digital archives

Kelowna Capital News donated materials dating from 1980 to 2000

Heart attacks strike B.C. husband and wife just over one year apart

Courtenay couple share personal stories to bring awareness to heart month

‘Nothing surprises us anymore:’ U.S. border officials find brain in package

U.S. Customs and Border Protection agents found the brain packed in a glass mason jar in a Canada Post shipment

B.C., Ottawa sign sweeping 30-year deal for northern caribou habitat

West Moberly, Saulteau co-manage new protection on two million acres

Loans or gifts? Judge rules woman must pay Victoria man back $7K

B.C. judge rules that woman must pay back more than $7,000 in advanced funds to man

Eyes on police after Trudeau orders blockades torn down, injunctions enforced

The RCMP in B.C. have sent a letter to the traditional leaders of the Wet’suwet’en Nation

B.C. massage therapist suspended following allegations of sexual misconduct

While suspended, Leonard Krekic is not entitled to practice as an RMT in B.C.

Cheapest in B.C.: Penticton gas prices dip below $1 per litre

Two stores in Penticton have gas below a dollar.

VIDEO: Outpouring of worldwide support for bullied Australian boy

Australian actor Hugh Jackman said ‘you are stronger than you know, mate’

Most Read