A list compiled by Demographia International, which is in its 15th Annual housing affordability survey, basis affordability on the average housing income. Victoria is ranked 13th from the bottom, which means it is highly unaffordable. It is ahead of even Toronto and London, England.
Nanaimo is 19th least affordable, tied with the Comox Valley. Those two areas are more unaffordable than popular spots like Santa Barbara in California and Boulder in Colorado.
On the list, the Vancouver market is the second least affordable in the world, behind Hong Kong. After Vancouver are Sydney, Melbourne, Santa Cruz, San Jose and Los Angeles.
The survey rates housing affordability using the “median multiple” which is the average housing price divided by the median household income in a market. A median multiple of 5.1, where the home costs five times more than the average household income, is considered “severely unaffordable. Vancouver’s median multiple is at 12.6, Victoria’s is 8.5, Nanaimo is 8.0 and the Comox Valley is 7.5.
Demographia International’s report also states that while the B.C.’s foreign buyer’s tax has been associated with moderation of house prices in Vancouver, “reductions have been concentrated in higher cost houses, with middle market housing affordability having continued some deterioration.”