This map shows the median dwelling value divided by the median family income in each area based on 2015/2016 census data. Compare this map to the corresponding one based on median household income instead of median family income. For consistency we have kept the colour scales fixed.

This is often taken as a measure for affordability. Intuitively the resulting quotient describes, for each region, how many years the typical household has to work in order to afford the typical dwelling unit. General warnings around the median multiple metrics apply, this ignores distributional effects, depends strongly on household composition in each area and loses value in areas with high proportion of tenant households. One should also remember that census income numbers do not include capital gains income or RRSP withdrawls.

It can also be interpreted as a measure of risk of gentrification. Areas with very high quotients will likely experience gentrification, as the demographics living in the region right now are unable to buy there again.

This scatterplot gives another view of the data and shows how different dwelling value and income pairs can lead to the same affordability index.

Also important to keep in mind is the percentage of households that are own vs rent. This can vary dramatically and have a strong influence on the local affordability index. Generally the local affordability index improves as the proportion of owner households increases, but this is much less the case in Vancouver.

We may also look at the running shelter costs to income ratio, which give a different point of view on the same topic. For more serious views on affordability we should refer to maps based on data computed at the individual household level.

As always, our maps are Canada wide. Use the search bar, zoom and pan to explore other regions in Canada.