Owning a Home in Northern B.C. Remains ‘Exceptionally Affordable’
Prince George, B.C. – No surprise to northerners, but home ownership here remains “exceptionally affordable” compared to elsewhere in the province.
That according to a new report released by the Northern Real Estate Board.
Past president David Black says they’ve based their findings on housing affordability indicators.
Those indicators measure the relationship between the median house price in any specific market and the median household income.
He says that gives you a number which indicates the percentage of median income that it would take to pay the mortgage, taxes, fees, and utilities for a median priced house in that market.
Black says the housing affordability indicator for northern, B.C. was 27.9% compared to 87.1% for Vancouver and 70.4% province-wide.
2015 Indicators – % of household income to finance home ownership in northern, B.C.
Terrace – 32.1%
Prince Rupert – 31.5%
100 Mile House – 29.9%
FSJ – 29.5%
Prince George – 28.3%
Kitimat – 26.1%
Smithers – 26%
Williams Lake – 26%
Quesnel – 25.7%
Mackenzie – 20.1%
“Historically, the largest contributor to these differences has been house prices, and this trend continues for 2015,” he says.
“The average price of a single family home sold in northern, B.C. in 2015 was about $280,000. Second quarter stats list average Vancouver house prices at $967,500, while the provincial average was almost $720,000.”
Housing affordability indicators were measured in 10 markets in the northern real estate region and Black says Terrace was tops at 32.1% while Prince George was around the middle of the pack at 28.3%.
Black says housing affordability boils down to good old supply and demand.
“We don’t have the demand here that they have in Victoria or Kelowna,” he says.
“When you see those skyrocketing prices where there’s a restrictive element in the mix like in Vancouver, it’s space and there’s only so much of it. Here we have a fairly stable economy, the population numbers here in Prince George, they haven’t changed.”
Comments
Does this sound familiar? “In Prince George, one of the lowest unemployment rates in the country and that means people can move up to a higher paying career. We also have low average house prices and that means people can move up from renting to owning a home. If you are underemployed in any Canadian city, then move up to Prince George. The opportunities are endless.”
“Beginning on September 4, 2014, residents of Toronto, Windsor, Vancouver, Victoria and Edmonton will start noticing advertisements emblazoned with the slogan ‘Move Up Prince George’ popping up in subways, sky trains, bus shelters, and buses, as well as in post-secondary publications and online through mobile and social media ads.”
www. marketwired.com/press-release/canadians-encouraged-to-move-up-to-prince-george-1943717.htm
My point is, we have heard this before, in fact over, and over, and over again. Do you know why it’s not working, and no one is moving to Prince George, or Northern BC in massive droves (except for Terrace)? Because there are no jobs!!! Prince George has been stagnant for more than a decade, and will continue to be into the foreseeable future… so go ahead and spout off about how affordable it is to own a house up here, because past experience dictates it won’t make a lick of difference. Prince George had a Site C jobs fair a few weeks ago, where more than a thousand unemployed people showed up… now what does that say?
Ads do not cut it. Where is the independent evaluation?
This year’s MoneySense’s annual evaluation of best city to invest in is Thunder Bay (PG is not included since it is too small)
Thunder Bay homes offer great income potential. Rental rates in the city have risen 22% in the last five years, in part due to the persistent influx of post-secondary students who come to study at the Northern Ontario School of Medicine.
Thunder Bay has been methodically rebuilding itself as a knowledge economy centre, attracting jobs in the medical, educational and government sectors. As such, the city’s job market is sheltered somewhat from price drops that have plagued manufacturing and resource sectors across Canada.
Residents have remarkable buying power. The average household income is a reasonable $81,000. Yet home prices in the city remain exceptionally affordable: The average 2015 home cost just under $216,000, a little over two and a half times the average household income.
Note that Thunder Bay is as remote as PG and has similar weather. Thunder Bay has had a similar forest industry background to PG. For several census’, Thunder Bay was also losing population. PG just has not been able to turn it around.
Can someone in this City please provide us with some stats as to how well we are doing in relation to places like Thunder Bay as well as in relation to ourselves over time from the time of the coming of the pulp mills. Statistics that give a range of 2 or 3 years are totally meaningless, in my opinion.
I think it’s also a disservice to compare PG housing prices to the BC average, when we all know that Vancouver’s market distorts things considerably. Add Victoria and the Okanagan into the mix, and it’s just not a useful comparison when trying to gauge “affordability” as compared to peer communities across the country (and even much larger cities that wouldn’t be considered as peers).
Yes, within BC, PG real estate in affordable. Compared to much of central Canada, it’s about the same as many other places. Compared to eastern Canada, it’s much more expensive.
I’d love to buy a rural property and move back to the area but every time I find a place worth looking at the answer is always the same . No , there is no internet . So , no sale . Cullen is trying to change that in skeena . If he succeeds , it will be a game changer .
No internet? Which planet are you on? Seriously though, internet is everywhere and a lot more affordable than it was when satellite was only 1 way. You can get some pretty reasonable satellite packages if all you mainly do is surf and email. Satellite is not so good for streaming hd movies or watching live streams, but mainly due to the cap restrictions than speed.
Satilites are great as long as there isn’t a mountain in the way .
Actually there is Internet … via satellite … not cheap but is available … every lifestyle has its pros and cons … just don’t expect everybody else to subsidize the cons or expenses of your choice
Satilite Internet is so slow that it is useless for anyone running a business or working online . People working online need high speed , reliable conection . Cullen understands this and is doing what he can to get more for skeena riding in this regard .
Saw the headline. Said Northern BC. Thought right away, Atlin, Ft. Nelson, Telegraph Creek, Dease Lake, No Hope Lake, yep, should be real affordable.
Prince George, in the CENTRAL INTERIOR, well, it’s more affordable than Vancouver that’s for sure, LOL.
Exactly Griz. People in the real North laugh when they hear someone refer to P.G. as ‘The North’
We are North of the lower mainland, and beyond Hope.;)
metalman.
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