In our seemingly never ending quest to explain who is buying our overpriced houses here in Victoria, we give you this.
Some highlights (all numbers 2004):
"Total income” in this case includes income from employment, investment, government transfers, private pensions, registered retirement savings plans and other income. You know. Total.
Median total income of all people (working or not) in Canada: $24,400 or $12.20/hour
In 2004, you were in the top third of incomes if you made more than…are you ready? $35,000.
Only 19.8 percent of Canadians with an income made $50,000 or more in 2004.
Now, although a bit over 12 percent of individuals had incomes between $50,000 and $75,000, the atmosphere thins out pretty quickly above that. Only 7.6 percent of people had incomes of $75,000 or more in 2004. Only 3.4 percent made $100,000 or more. And by the time we get to the $150,000 or more category, we're down to just 1.3 percent of income recipients.
What about families you say? “Couple families” are couples (married or common-law, including same-sex couples) living at the same address, with or without children.
The median total income from all sources for all members of such families in 2004 was $64,800. Less than a quarter of such households had total incomes of $100,000 or more. And just over 8 percent had incomes of $150,000 or greater.
What does this all mean? Considering that it takes a household income of $134K to purchase an average home in Victoria at $521K with 25% down at 5% interest over 25 years, we're talking about less than 25% of Victorians can buy an average SFH. Think about that. Less than 25%, many of whom will already own. No wonder why there are so many condos being built and so many alternative mortgages being sold.