Other factors that affected the income requirement were interest rate hikes and harder stress tests. Throughout 2022 and into 2023, the central bank has been hiking its key rate which makes applying for mortgages more expensive than a few years ago. Prospective buyers also need to qualify at 8.5% interest for a mortgage with a 6.5% interest rate, according to the stress test.
While home prices softened in other parts of Canada, it was still expensive to purchase overall due to higher rates.
According to the Canada Mortgage and Housing Corporation, the average income of a family in Vancouver was $96,423 with the median being $73,000, which further pushed the idea of homeownership out of reach of the average Canadian.