AFFORDABILITY INDEX (10% DOWN PAYMENT ONLY)

Metro Affordability

An explanation of the definitions and assumptions used in the Index

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 multifamily projects in Metro
Vancouver.
Resale prices were collected from the Real
Estate Boards of Greater
Vancouver and the Fraser
Valley, with median sales
for this index. There is
not enough data to track
West
Van.

North
Van.

Vancouver
Proper

Richmond

new single-family home

prices, so only MLS resale
single family prices are
used.
ASSUMED DOWN
PAYMENTS

For the first-time buyer,

a 10 per cent down payment, which requires an
insured mortgage and
a 25-year amortization,
was assumed.

OTHER ASSUMPTIONS
The affordability index
assumes that a person
can afford a maximum
of 32 per cent of their
gross family income to
The reason for the differ- go toward mortgage
ences is the assumption
payments.
that townhouse and
Transportation costs
single-family buyers are
were also included, with
more likely to be moveestimates coming from a
up buyers with equity
2005 Greater Vancouver
built up in their existing
Regional District report,
property.
a Canadian Automobile
ANALYTICAL METHODS Club survey from 2012
and a 2006 Metro estiFive-year, fixed rate
mate on commuter
30-year amortization
distances. Different
mortgages were used,
taking an average of the amounts are used for
best rates at eight banks each area.
TRACY SHERLOCK, VANCOUVER SUN
at the time of analysis.
First-time buyers: 10%
Wood frame and concrete
condominiums:
20%
Townhouses:
30%
Single-family homes: 35%

VANCOUVER

INNER
METRO

Coquitlam
Port
Moody
Burnaby
Port
Coquitlam
Pitt
Meadows
New
West.
Surrey

OUTER
METRO

Maple
Ridge

Langley

Delta

AFFORDABILITY INDEX (10% DOWN PAYMENT ONLY)

New wood frame condominiums

Avg.
Avg.
Avg. Est. mortgage

price
size
$/ft2
payment
$301,447
877
$344
$1,341
$374,780
834
$449
$1,668
$485,557
772
$629
$2,161

Req. income Working households at/

for 32%
or above req. income
$50,300
64.0%
$62,536
52.3%
$81,021
34.0%

Dec. 2014 wood frame condominium re-sales

Med.
Est. mortgage
Req. income

price
payment
for 32%
$198,500
$883
$33,122
$285,000
$1,268
$47,556
$394,700
$1,756
$65,860

Working households at/

or above req. income
78.4%
63.7%
43.5%

Med.
Est. mortgage
Req. income

price
payment
for 32%
MLS re-sale concrete condominiums
$224,900
$797
$29,874
MLS re-sale wood frame condominiums
$198,500
$703
$26,367
MLS re-sale townhomes
$328,000
$1,017
$38,123
MLS single family
$621,500
$1,789
$67,077
Estimated monthly transportation costs (All): $498
MLS re-sale concrete condominiums
$385,000
$1,364
$51,141
MLS re-sale wood frame condominiums
$285,000
$1,010
$37,857
MLS re-sale townhomes
$500,000
$1,550
$58,115
MLS single family
$1,055,000
$3,036
$113,863
Estimated monthly transportation costs (All): $383
MLS re-sale concrete condominiums
$440,000
$1,559
$58,447
MLS re-sale wood frame condominiums
$394,700
$1,398
$52,429
MLS re-sale townhomes
$804,545
$2,494
$93,512
MLS single family
$1,564,500
$4,503
$168,852
Estimated monthly transportation costs (All): $383

Working households at/

or above req. income
81.1%
83.7%
74.1%
51.2%

60.8%
71.8%
55.5%
24.4%

48.3%
52.8%
28.0%
9.3%

AFFORDABILITY INDEX (NEW HOMES)

Med.
Avg.
Avg. Est. mortgage Req. income Working households at/

price
size
$/ft2
payment
for 32%
or above req. income
New concrete condominiums
$291,648
651
$448
$1,033
$38,741
73.6%
New wood frame condominiums
$301,447
877
$344
$1,068
$40,042
72.5%
New townhomes
$394,818 1,618
$244
$1,224
$45,889
67.7%
MLS single family
$621,500
$1,789
$67,077
51.2%
Estimated monthly transportation costs (All): $498
New concrete condominiums
$447,707
801
$559
$1,586
$59,470
New wood frame condominiums
$374,780
834
$449
$1,328
$49,783
New townhomes
$553,639 1,355
$409
$1,716
$64,349
MLS single family
$1,055,00
$3,036
$113,863
Estimated monthly transportation costs (All): $383
New concrete condominiums
$554,141
766
$723
$1,963
$73,608
New wood frame condominiums
$485,557
772
$629
$1,720
$64,498
New townhomes
$718,848 1,152
$624
$2,228
$83,551
MLS single family
$1,564,500
$4,503
$168,852
Estimated monthly transportation costs (All): $383

54.4%
61.8%
51.1%
24.4%

38.6%
44.4%
32.8%
9.3%