Cape Breton Ranked the Most Affordable Housing Market in Canada. The Island also ranks the fifth most affordable housing market internationally
Dateline: April 22, 2009 – Nova Scotia: The Nova Scotia Association of REALTORS® announced today that Cape Breton has received a Demographia International Affordable Housing Market Award. According to the Fifth Annual Demographia International Housing Affordability Survey, Cape Breton ranked number 1 of 10 cities found to have affordable housing out of 34 Canadian Markets. Cape Breton also ranked the fifth most affordable housing market internationally.
THe index Median Multiple for housing affordability is 3.0 or less. This means that the median house price is not more than three times the median household income. Cape Breton stands out as a model for others for having achieved a Median Multiple of 2.1.
Housing affordability is coming to be recognized as a driver of internal migration on a very large scale in Canada, the United States, and internationally. Based on historical trends, a Median Multiple of 3.0 or below is judged to be “affordable”. However, it is an unfortunate fact that some markets are now approaching Median Multiples of 9.0, or three times the traditional level. As an example, Vancouver has a median multiple of 8.4. Not only does this indicate that houses are over four times less affordable compared to income than frontrunner Cape Breton, but mortgage servicing costs are also much greater.
The 10 Canadian Metropolitan Markets with a Median Multiple of less than 3.0:
International Canada Housing Market
Ranking Ranking Median Multiple
5 1 Cape Breton, NS 2.1
12 2 Thunder Bay, ON 2.2
17 3 Chatham, ON 2.3
17 3 Windsor, ON 2.3
24 5 Moncton, NB 2.4
39 6 Saguenay, QC 2.6
48 7 Trois-Rivieres, QC 2.7
48 7 Saint John, NB 2.7
61 9 St. John’s, NL 2.8
80 10 Winnipeg, MB 3.0