If you’ve ever dreamed about jumping the Canadian ship to move somewhere like New York or L.A. but decided against it because Canada is “so much cheaper”, think again. A new report from Oxford Economics just ranked the least affordable housing in North American cities, and guess what? Three Canadian spots took top spots.
Which Canadian cities? You might ask. Drumroll, please… Vancouver, Toronto, and Hamilton. We can’t say we’re surprised by those first two choices. But Hamilton? More expensive than New York and L.A.? These really are wild times…
But alas, it’s true. Vancouver was ranked in first place for least affordability, while Toronto came in second, and Hamilton third. In fact, the report even stated that here in Canada, the Housing Affordability Indices (the system Oxford Economics used to rank affordability) rose in 2021 to the point where homes are 34% more expensive than the median-income household could afford.
To compare, in the U.S. the median single-family home price was 34% below what the median-income household could afford. Should we be scoping out American real estate??
Oxford Economics used the North American Housing Affordability Indices (HAIs) to come to their results. The HAIs are a cross-country framework with affordability at a national, regional, and local level in mind; they take in factors like income growth and mortgage rates.
So there you have it! If you’re planning on moving to Vancouver, Toronto, or Hamilton make sure you’ve got some big bucks to back you.
To read the full report, head online here.