The affordability measuring refers to the amount of goods and service that an individual can be afford to buy. According to the Demographia International Housing Affordability Survey (2017), the housing affordability measures the annual household income ratio to the housing prices at a certain place. When compare the housing market in two or multiple areas, is better to look at the housing affordability multipliers than merely the housing prices. Reason for that is the latter only indicate the properties’ worth regardless the role of income which determine the feasibility of people to purchase the house. Including the household income normalize the statistics and they become more meaningful when compare the housing affordability in places. The survey has rated the affordability in four categories through the method “Median Multiples” which is based on the ratio of median household income and median house price.
| Housing Affordability Rate | Median Multiple |
| Affordable | 3.0 & under |
| Moderately Unaffordable | 3.1 ~ 4.0 |
| Seriously Unaffordable | 4.1 ~ 5.0 |
| Severely Unaffordable | 5.1 & over |
Affordability is considering one of the most important indicator of a city livability. The above graph about the housing affordability between London and Vancouver, it clearly reveals the Vancouver housing market is in a very critical situation that most resident can’t afford to buy a property in contrast to a mid-size city such as London, Ontario. In terms of weather or climate, Vancouver have very comfortable living environment due to its mild winters and cool summer when you compare with the harsh winter and heavy snowfall in Southern Ontario. However, London has relative higher income and much cheaper housing than Vancouver. Despite the weather, people maybe more willing to move or staying in London; meanwhile, Vancouver unaffordable housing hold back the new residents and more people planning or already moved out from the city. The government authorities should carefully manage the urban housing market under control in order to make the city thrive in the long-term development.
References:
- Canada, Government of Canada Statistics. “Median total income, by family type, by census metropolitan area (All census families).” Statistics Canada, 14 July 2016. Web. 26 Feb. 2017.
- Hartwich, Oliver. 13th Annual Demographia International Housing Affordability Survey: 2017. N.p.: Demographia , 2017. PDF.