Two Canadian Cities Ranked Among Most Expensive Places to Purchase a Home Worldwide

Two Canadian cities have been labeled as “impossibly unaffordable” after being ranked among the top 12 most expensive housing markets in the English-speaking world.

A recent report from Demographia identified Vancouver as the third least affordable city globally, with Toronto coming in at 11th place on the list.

The study analyzed middle-income affordability across 94 major housing markets in various countries. Each city’s house-price-to-income ratio was calculated, and rankings were based on specific score ranges.

Cities scoring 9 or higher were classified as “impossibly unaffordable,” a new category introduced in this year’s study.

Hong Kong secured the top spot as the least affordable market, followed by Sydney and then Vancouver.

Related Stories

San Jose, Los Angeles, Honolulu, Melbourne, and several other cities also ranked high on the list of unaffordable housing markets.

Canadian Markets

Vancouver and Toronto have consistently ranked as unaffordable housing markets for several years. The housing crisis has also affected smaller markets outside these major cities.

While other cities in Canada may have lower scores than Vancouver or Toronto, affordability remains a concern across the country.

Housing, Income Disparity

RBC’s assistant chief economist highlights Canada’s worsening housing affordability crisis, especially in Vancouver and Toronto.

The report also discusses the historical trends of housing affordability in Canada and points out the increasing gap between house prices and household incomes.

Supply and Demand

RBC’s report emphasizes the importance of addressing the supply-demand gap in Canada’s housing market to mitigate the affordability crisis.

The report suggests that substantial increases in housing construction are needed to meet future demand and population growth.