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The affordability index defines “affordable” as the percentage of households living in a region with the income required to qualify for the mortgage needed to own the property. Typically, a bank wants no more than 32 per cent of income going to housing if it is to provide a mortgage.
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Vancouver Inner Metro Outer Metro
VancouverproperVancouverproper
WestVan.WestVan. North
Van.NorthVan.
BurnabyBurnaby
RichmondRichmond
DeltaDelta
New West.New West.
SurreySurreyLangleyLangley
PittMeadowsPittMeadows
MapleRidgeMapleRidge
PortCo.PortCo.
CoquitlamCoquitlamPortMoodyPortMoody
M AG G I E W O NG / P O S T M E D I A N E W S
An explanation of the definitions and assumptions used in the index
M E T R O A F F O R DA B I L I T Y
New wood-frame condominiums
A F F O R DA B I L I T Y I N D E X ( 10 % D OW N PAY M E N T O N LY )
A F F O R DA B I L I T Y I N D E X ( R E S A L E H O M E S )
A F F O R DA B I L I T Y I N D E X ( N EW H O M E S )
UDI/VANCITY HOUSING AFFORDABILITY INDEXP OW E R E D BY U R BA N A NA LY T I C S I NC.
DEFINITIONS Inner Metro: West Vancouver, North Vancouver, Burnaby, New Westminster, Richmond, South Delta, Coquitlam, Port Moody and Port Coquitlam. Outer Metro: Langley, North Delta, Surrey, White Rock, Pitt Meadows and Maple Ridge.
PRICES Average prices for the new home market were collected from actively selling, new multi-family projects in Metro Vancouver. Resale prices were collected from the real estate boards of Greater Vancou-ver and the Fraser Valley, with median sales for this index. There is not enough data to track new single-family home prices, so only MLS resale single-family prices are used.
ASSUMED DOWN PAYMENTS First-time buyers: 10%
Wood-frame and concretecondominiums: 20%Townhouses: 30%Single-family homes: 35%
The reason for the differences is the assumption that townhouse and single-family buyers are more likely to be move-up buyers with equity built up in their existing property.
ANALYTICAL METHODS Five-year fixed-rate 30-year-amortizationmortgages were used, taking an average of the best rates at eight banks at the time of analysisFor the first-time buyer, a 10-per-cent down payment, which requires an isured mortgage and a 25-year amortization, was assumed.
OTHER ASSUMPTIONSThe affordability index assumes that a person can afford a maximum of 32 per cent of their gross family income to go toward mortgage payments. Transportation costs were also included, with estimates coming from a 2005 Greater Vancouver Regional District report, a Canadian Automobile Club survey from 2012 and a 2006 Metro estimate on commuter distances. Different amounts are used for each area.
T R AC Y S H E R L O C K / P O S T M E D I A N E W S
District Avg. Avg. Avg. Est. mortgage Req. income Working household at price size $/ft2 payment for 32% or above req. income
$299,111 835 $358 $1,293 $48,490 65.5%
$436,102 843 $518 $1,885 $70,698 46.9%
$686,176 966 $710 $2,966 $111,238 21.2%
Avg. Avg. Avg. Est. mortgage Req. income Working household at price size $/ft2 payment for 32% or above req. income
District: Outer MetroNew concrete condominiums
$289,072 623 $464 $990 $37,129 75.0%
New wood frame condominiums
$299,111 835 $358 $1,024 $38,418 73.9%
New townhomes
$440,079 1,672 $263 $1,319 $49,459 64.7%
MLS single family
$848,000 $2,360 $88,496 36.7%
Estimated monthly transportation costs (All): $498
District: Inner MetroNew concrete condominiums
$505,660 820 $617 $1,732 $64,948 50.7%
New wood frame condominiums
$436,302 843 $518 $1,494 $56,014 57.1%
New townhomes
$596,372 1,167 $511 $1,787 $67,024 49.3%
MLS single family
$1,450,000 $4,035 $151,321 13.1%
Estimated monthly transportation costs (All): $383
District: VancouverNew concrete condominiums
$872,843 861 $1,013 $2,990 $112,110 20.9%
New wood frame condominiums
$686,176 966 $710 $2,380 $88,134 30.6%
New townhomes
$844,180 1,259 $670 $2,530 $94,875 27.3%
MLS single family
$2,250,000 $6,262 $234,808 3.7%
Estimated monthly transportation costs (All): $383
March 2016 wood-frame condominium re-sales
District Med. Est. mortgage Req. income Working households at price payment for 32% or above req. income
$245,000 $1,059 $39,718 72.8%
$346,000 $1,496 $56,091 57.0%
$500,000 $2,161 $81,056 34.0%
Med. price Est. mortgage payment Req. income for 32% Working households at or above req. income
District: Outer MetroRe-sale concrete condominiums
$275,000 $942 $35,321 76.6%
MLS re-sale wood frame condominiums
$245,000 $839 $31,468 79.8%
MLS re-sale townhomes
$401,000 $1,202 $45,067 68.4%
MLS single family
$848,000 $2,360 $88,496 36.7%
Estimated monthly transportation costs (All): $498
District: Inner MetroRe-sale concrete condominiums
$457,500 $1,567 $58,762 54.0%
MLS re-sale wood frame condominiums
$346,000 $1,185 $44,441 66.3%
MLS re-sale townhomes
$651,000 $1,951 $73,164 46.2%
MLS single family
$1,450,000 $4,035 $151,321 13.1%
Estimated monthly transportation costs (All): $383
District: VancouverResale concrete condominiums
$625,000 $2,141 $80,276 34.3%
MLS re-sale wood frame condominiums
$500,000 $1,713 $64,221 44.5%
MLS re-sale townhomes
$1,099,000 $3,294 $123,513 17.2%
MLS single family
$2,250,000 $6,262 $234,808 3.7%
Estimated monthly transportation costs (All): $383
