Quote:
Originally Posted by bcedhk
Are there any stats to show how many of these new SFH buyers over the years are actually house poor?
With SFH in Lower Mainland priced over 1.5 mil, I would guess a number of 'young' buyers (30's - early 40's) are either relying heavily on their parents downpayment or are paying a huge chunk of their combined monthly income on the house + maintenance?
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I actually doubt that many of these buyers are very house poor. According to Vancouver records there were about 41k detached homes and 57k duplexes in Vancouver in 2017. Let's assume 80% of the duplexes are in East Van (46k) and 60% of the detached homes are in East Van (25K) so that's 70k units that are available in all of East Van that go for above $1.2m.
According to Stats Can ~17% of the GVRD has household income above $150k - let's say that 10% of them have incomes over $200k (about 90k households) which is a monthly net of about $11k/mo, sprinkle some savings/prior equity ($150-250k), and a little bit of help from the parents ($50-200k) and you've got yourself a monthly payment of $4-6k that's helped with the $1500/mo of rental income. Not great but definitely manageable.
Some of those folks will be quite comfortable if they came into it with more equity or higher income and a few will be stretching but not a crazy number I think considering the pool of people making this kind of income is relatively large compared to the number of units available in Vancouver (this doesn't include Burnaby etc which would like 5-6x the total viable units).