Toronto Named One Of The World’s Most Unaffordable Cities
Tell us something we don’t know. Demographia names Toronto one of the most unaffordable cities in the world. And it’s not the only Canadian city to make the list.
For the ninth year in a row, Hong Kong has been ranked the least affordable housing market in the world. Vancouver came in second.
According to urban planning consultancy firm, Demographia, the cost of real estate in Hong Kong jumped 20.9 times the average household income in 2018. In 2017, the average cost increased 19.4 times.
Vancouver jumped passed Sydney to snag the second spot while Melbourne and San Jose rounded out the top five.
Toronto jumped from the 21st spot to tenth, tying with London, England.
Canada has four of the nine most affordable housing markets in the world. Cape Breton, Nova Scotia and Fort McMurray, Alberta lead the pack as the first and second most affordable markets.
Canada is also home to 17 of the 79 severely unaffordable markets.
Both Toronto and Vancouver have been deemed “severely unaffordable”.
According to the 2018 RBC Economics Affordability Report, Vancouverites would need 117 per cent of their pre-tax gross income to afford monthly payments on the average cost of a single detached house. Torontonians would need 90 per cent.
In 2018, UBS Global Real Estate Bubble Index stated Vancouver had the fourth worst “bubble risk” in the world. Toronto came in third.
According to the report, Montreal is “seriously unaffordable” while Calgary and Ottawa-Gatineau are “moderately unaffordable”.