Metro Affordability

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.

An explanation of the definitions and assumptions used in the Index

MLS RESALES JUNE 2013

Avg. price $272,000 $210,000 $324,000 $567,000

Est. mortgage payment $1,029 $794 $1,072 $1,742

Req. income for 32% $38,578 $29,784 $40,209 $65,339

Working households at/ or above req. income 70.8% 79.5% 69.2% 46.4%

PRICES 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 Vancouver 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. INCOME The index uses household income information from Statistics Canada data from the West Vancouver

2006 census. Statistics Canada does not sort household income into brackets when income exceeds $70,000. Thus when the required gross annual incomes are above $70,000, estimates of the percentage of eligible households cannot be made in full detail. This is why the more expensive areas read as less than 32 per cent of people can afford the payments. ASSUMED DOWN PAYMENTS First-time buyers: 10% Wood frame and concrete condominiums: 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 amortization mortgages were used, taking an average of the best rates at eight banks at the time of analysis. 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 go toward mortgage payments. Transportation costs were also included, with estimates taken from a 2005 Greater Vancouver Regional District report, a Canadian Automobile Club survey from 2012 and a 2006 Metro Vancouver estimate on commuter distances. Different amounts are used for each area.
TRACY SHERLOCK, VANCOUVER SUN

Outer Metro
MLS resale concrete condominiums MLS resale wood frame condominiums MLS resale townhomes MLS single family

Estimated monthly transportation cost (All): $498 Inner Metro

MLS resale concrete condominiums MLS resale wood frame condominiums MLS resale townhomes MLS single family $390,000 $310,000 $465,000 $838,000 $1,475 $1,172 $1,539 $2,575 $55,314 $43,967 $57,707 $96,569 52.6% 62.7% 50.5% less than 40.9%

Estimated monthly transportation cost (All): $383 Inner Metro

MLS resale concrete condominiums MLS resale wood frame condominiums MLS resale townhomes MLS single family $456,000 $408,000 $643,800 $1,250,000 $1,725 $1,543 $2,131 $3,841 $64,675 $57,867 $79,896 $144,046 35.8% 40.9% less than 32% less than 32%

VANCOUVER North Vancouver Port Moody

INNER METRO Coquitlam

OUTER METRO

Estimated monthly transportation cost (All): $383

NEW HOMES Avg. price $286,374 $273,241 Avg. Avg. size $/ft2 663 $432 841 $325 Est. mortgage Req. income payment for 32% $1,083 $1,033 $1,231 $1,742 $40,616 $38,754 $46,159 $65,339 Working households at/ or above req. income 68.8% 70.7% 63.5% 46.4%

Burnaby Vancouver proper

Port Coquitlam Pitt Meadows Maple Ridge

Outer Metro
New concrete condominiums New wood frame condominiums New townhomes MLS single family

$371,946 1,572 $237 $567,000

Richmond

Surrey Langley

Estimated monthly transportation cost (All): $498 Inner Metro

New concrete condominiums New wood frame condominiums $402,556 $351,385 782 $515 813 $432 $1,523 $1,329 $1,620 $2,575 $57,095 $49,837 $60,763 $96,569 51.1% 57.3% 48.0% less than 40.9%

Source: Government of B.C.

South Delta

10% DOWN PAYMENT ONLY New wood frame condominiums Avg. Avg. price size

Avg. $/ft2

Est. Mortgage Req. Income payment for 32%

Working Households at/ or above Req. income

New townhomes MLS single family

$489,625 1,373 $357 $838,000

Outer Metro Inner Metro Vancouver

$273,241 841 $325 $351,385 813 $432 $505,438 808 $626

$1,287 $1,654 $2,380

$48,245 $62,042 $89,242

Req. Income for 32%

61.5% 47.0% Less than 32%

Working Households at/ or above Req. income

Estimated monthly transportation cost (All): $383 Vancouver

New concrete condominiums New wood frame condominiums New townhomes MLS single family $511,800 $505,438 729 $702 808 $626 $1,936 $1,912 $3,406 $3,841 $72,589 $71,686 $127,721 $144,046 less than 32% less than 32% less than 32% less than 32%

June 2013 wood frame condominium resales Avg. Est. Mortgage price payment

Outer Metro Inner Metro Vancouver

$210,000 $310,000 $408,000

$989 $1,460 $1,921

$37,078 $54,735 $72,038

72.3% 53.1% Less than 32%

$1,029,166 1,596 $645 $1,250,000

Estimated monthly transportation cost (All): $383

GRAPHIC BY: MAGGIE WONG/VANCOUVER SUN