[quote=“Pantagruel”]When you are trying to assess whether housing prices are ‘fair’ you might want to consider the ratio between the average house price and average annual wages for two different locales. By way of example, lets assume that in Prince Rupert you can buy a detached house for $150,000 (not a “fixer-upper”) and the average fulltime employed annual wage is $50,000. By dividing the house price by the wages, it would give us a ratio of 3:1. Now, lets consider Vancouver. A detached house in Vancouver will cost, I believe, at least $800,000. If we assume the average wage is $80,000 (probably overestimated) then the ratio is 10:1. So, using this ratio, it would appear that our housing prices are more fair than Vancouver.
I don’t have any evidence, but my gut feeling is that, if the rents are high, the reason might be a combination of the following: a lot of the rental properties in this town are controlled by a small number of companies and the fact that there is quite a number of people here who need to rent as they unable to buy (not full-time employed). These people are, in effect, a captive rental market and cannot, if rents go up, go to the bank and get a house mortgage.
Having postulated the foregoing, and having being a landlord, I know that the costs that can be incurred when a renter damages a place or doesn’t pay their rent can wipeout a year’s rent receipts pretty easily. My experience is that the Landlord Tenant Act is heavily weighted towards the tenant. I doubt that the rents charged here are much higher than other places.[/quote]
Vancouver is Vancouver, your comparing a place that’s always in the top 3 best place to live in in the world and a hugely desired place to live. Rupert would be compared to Terrace or Campbell River ect not Vancouver that’s one of the most expensive places to live in and offers so much more. I do think home prices here are high, those new homes on 7th are a joke of a price near half a million for them and it’s on freaking 7th east. I barely see a home on the market worth buying.