Housing affordability refers to the ability of individuals or households to access adequate housing within their financial means. It is commonly measured as a percentage of household income spent on shelter costs, with 30% often cited as a benchmark for affordability. When housing costs exceed this threshold, households are at risk of financial strain which limits their ability to meet other essential needs. This trend is seen in major cities in Canada and worldwide, where housing costs have outpaced income growth.
In British Columbia, particularly Vancouver, housing affordability is a critical issue. Vancouver consistently ranks as one of the most expensive cities in Canada and globally, with high housing prices driven by demand, limited supply, and urban development constraints. These factors create significant challenges for residents across income levels, especially those in low- to moderate-income brackets.
Housing affordability involves examining factors such as housing supply, affordability and livability, current government policies, and urban development. Historically, housing affordability in Vancouver posed fewer challenges when housing prices were more closely aligned with income growth. The past few decades have dramatically shifted due to rapid urbanization, global investment, and population growth, leading to a disconnect between wages and housing costs.
This image features an estate in First Shaughnessy, one of Vancouver's most prestigious neighbourhoods. This area reflects its status with properties often valued at $9.6 million or more. (Source: DailyHive)
The evolution of housing affordability in Vancouver reflects the city’s economic growth, urban development, and shifting demographics over time. In the early 20th century, Vancouver was a relatively affordable city, with housing prices closely tied to local income levels and a less densely populated urban environment. However, the city’s growth has significantly altered its housing landscape and intensified competition for housing. By 2024, Vancouver has become one of the least affordable housing markets globally, with average home prices outpacing median incomes.
This highlights the massive shift in affordability, highlighted through key milestones over the decades.
Housing Affordability in Vancouver: Percentage of Median Income Required for Mortgage Payments (2000–2024)