Millennials in Vancouver really can't catch a housing break compared to the rest of Canadians.
A new report from Vancity credit union hits that truth home.
Condo buildings in Vancouver's West End neighbourhood. (Photo: Bayne Staley/CP)
The benchmark price of a single-family home in Greater Vancouver was $1,403,200 last month, a 30.1 per cent increase from last year.
That alone is going to take a big wad of cash out of your wallet — but Vancity looked at how much money Vancouver millennials have left over after paying for housing, and other necessities.
And, well, just look at how they compare to other cities:
Vancouver couples between the ages of 25 and 34 would have zero disposable income left over for savings, entertainment, or even charitable contributions if they bought an average-priced home this year.
In fact, if they did buy a house, it would put them in debt to the tune of $2,745 per year.
Vancity based its report on a millennial household in Vancouver with an earning income of just over $72,291 in 2015. It also included yearly housing costs of $44,354, along with expenses such as taxes, health care, food, clothes, and public transit.
Other options available
But while the average housing price puts millennials into debt, there are alternate routes to save them some cash,
If a millennial couple purchased a condo, they'd have more money left over than people in Toronto — but still less than everybody else.
Younger Vancouverites could hold on to even more money if they chose to rent a one-bedroom unit outside the city — but again, they'd save less than everyone except Torontonians.
The situation looks even worse when you add child care costs.
Putting one child in full-time care leaves millennial homeowners in Vancouver with disposable income of -$17,325. Toronto and Victoria millennials also find themselves in the red.
Vancouverites do have $1,842 of income left over when they buy condos, but that's often not a feasible housing size when you're raising a family.
This is how much money couples paying for child care would have left over if they bought a townhouse:
Vancity suggested that families consider co-owning homes and sharing the financial risk of ownership to keep themselves in the black.
The credit union also urged investors to look at other ways of ensuring a good return, instead of using real estate as a "vehicle for wealth generation at the expense of affordable community dwellings."
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