Canada’s priciest real estate market has found its way onto another top-10 list.
Vancouver ranks as the third least-affordable city in the world according to Demographia. (www.demographia.com) Hong Kong and Sydney came in at one and two. Toronto did not make it into the top-10, although it ranks as the third least-affordable market in Canada. (The study uses a comparison of median prices and median wages to determine affordability.)
The study suggests land use restrictions are a big contributor to the lack of affordability arguing that the lack of land being made available for low-rise housing drives up demand and prices for, much preferred, single family homes.
In Toronto, though, there are hints this may be changing, albeit in the surrounding 905 area code. Figures compiled by Colliers International show that in the first three quarters of 2015 sales of residential land for townhouses and single-family homes rose from 29 to 35 compared to the same period a year earlier. At the same time, sales of land for high-rises dropped from 80 to 71.