An international report classifies Calgary’s housing market as “seriously unaffordable.”
The Demographia International’s 2015 Housing Affordability Survey examined data for the third quarter and found Calgary’s median home price is 4.2 times the city’s median gross income before tax.
The survey lists multiples of 4.1 to 5.0 as being in the “seriously unaffordable” range.
In a ranking of the most affordable major markets in the world, Calgary ranked 25th in Canada and 43rd globally, with a median price of $394,400, vs. median household income of $94,700.
Edmonton was classified as “moderately unaffordable,” with home prices 3.9 times the city’s median household income. It was 17th in Canada and 34th globally.
Vancouver was Canada’s least affordable market, and the second least affordable in the world, with a multiple of 10.6 (median home prices were $704,800, versus a median income of $66,400).
11th Annual Demographia International Housing Affordability Survey: Canada
The least affordable market in the world is in Hong Kong, where home prices of $4.9 million are 17 times the median income of $287,0000.
For Calgary, 2014 was a year of record prices in the resale housing market.
The average sale price of $483,079, was a record for the city and an increase of 5.8 per cent over 2013.
In 2014, overall records were also set for the benchmark price ($411,417) and the median price ($427,000).
In the fall, RBC Economics Research released its Housing Trends and Affordability Report said high and rising household incomes have been keeping housing in Calgary relatively affordable for potential buyers.
The readings indicated Calgary’s housing affordability conditions compared favourably to historical norms and to other Canadian cities, it said, though affordability measures rose in all categories — up 0.4 percentage points to 34.3 per cent for two-storey homes, 0.6 percentage points to 34.2 per cent for bungalows and 0.3 percentage points to 20.1 per cent for condo apartments.
The RBC housing affordability measures capture the proportion of pre-tax household income needed to service the costs of owning a home at market value.
mtoneguzzi@calgaryherald.com
Twitter.com/MTone123