How Vancouver Became “Impossibly Unaffordable” in 2025: 92nd Out of 95, Dead Last in Canada
A new global housing report shows Vancouver’s market is now one of the least affordable in the world, highlighting the challenges in Vancouver housing affordability. It is outpaced only by Hong Kong, Sydney, and San Jose.
Vancouver’s Housing Crisis Hits a New Low
Vancouver has officially cemented its reputation as one of the most expensive places to live — not just in Canada, but globally. Vancouver housing affordability is among the worst as shown by the 2025 Demographia International Housing Affordability Report, which ranked the city 92nd out of 95 markets worldwide for affordability. The city has a median multiple of 11.8. This means the average home costs nearly 12 times the median household income. Vancouver trails behind only Hong Kong, Sydney, and San Jose.
For context, housing is considered “affordable” when the median multiple is 3.0 or less. Vancouver housing affordability, as the figure indicates, is almost four times that benchmark.
Why Vancouver Is So Expensive — Beyond Supply and Demand
Historical Context: Vancouver’s affordability problem isn’t new. Over the past two decades, population growth, limited land availability, and restrictive zoning have driven prices higher, adversely affecting Vancouver housing affordability. The city’s geographical constraints — mountains, ocean, and agricultural land reserves — naturally limit where homes can be built.
Policy Factors: According to Demographia’s 2025 report, strict land-use policies, slow permitting, and high development fees create an environment where supply can’t meet demand, further worsening Vancouver housing affordability. Moreover, international investment and speculative buying have pushed prices upward. Local wages lag behind.
Expert Insight: “When housing prices are decoupled from local incomes, you’re not just talking about a market — you’re talking about an exclusionary system,” says urban economist Dr. Claire Park of UBC. “Vancouver’s crisis is now structural, not cyclical.”
The Human Impact — and Public Sentiment
For many residents, this crisis means:
- Delayed homeownership into middle age or beyond
- Increased reliance on rentals, with rising rents eating up income
- Young families leaving the city for more affordable regions
- A shrinking middle class, as lower-income residents are pushed out entirely
On social media, frustration is palpable. Vancouverites share stories of bidding wars, multiple offers over asking, and the emotional toll of years spent chasing an impossible dream.
What the Future Holds — and Possible Solutions
Short-Term Outlook: With interest rates stabilizing, experts don’t expect significant price drops in 2025. If anything, pent-up demand could keep upward pressure on prices.
Possible Solutions Under Discussion:
- Zoning Reform: Allowing more “missing middle” housing such as townhomes and multiplexes in single-family zones.
- Streamlined Permitting: Cutting red tape to get new housing to market faster.
- Targeted Taxes: Expanding vacant home and speculation taxes to discourage non-resident ownership.
- Public Housing Investment: Large-scale government-led projects to provide affordable rental stock.
Closing Thought
Vancouver’s “impossibly unaffordable” label isn’t just a statistic — it’s a reflection of the daily reality for hundreds of thousands of people. Whether the city can turn this around will depend on bold policy changes and innovative housing solutions. Furthermore, a shared commitment is required to ensure Vancouver remains not just livable, but truly accessible to the people who call it home.
For a deeper dive into how Vancouver compares to other global housing markets, read our Cost of Living Face-Off: Surrey vs. Abbotsford vs. Vancouver — Where Does Your Paycheck Go Furthest?.