Fact of the Day: Saving Forever for a Home

The takes about 38 years to save up for a down payment

Vancouver continues to have the reputation for being the least affordable urban area in Canada when it comes to buying a home, where home buyers pay an 89.9 percent premium compared to the national urban composite.

The price of a house in Vancouver is on average C$1.59 million (HK$9.3 million) in the first quarter of 2023.

And the average household income needed to afford a home at that price is C$322,245.

Condos aren't much cheaper than homes per sq/f

Based on that income, the number of months needed to save for a down payment, at a saving rate of 10 percent is 454 months, or just under 38 years.

Condos are cheaper of course, but still relatively expensive. An average price is around C$721,230, and an annual household income of C$171,052 is needed to afford it, and will take 67 months, or just over five and a half years to save enough for a down payment.

Is it any wonder young people who don't have parents who can help with the down payment, have given up completely on home ownership and instead focused on travel or other priorities instead of being indentured mortgage slaves?