Buyers need $8,571 monthly to afford median-priced West Side family-sized condo: City of Vancouver report

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      One can buy a lot of things with $8,571.

      If there is this much to spare each month, then might as well get a key to a family-sized condo on the West Side of Vancouver.

      According to a city staff report to council, it takes $8,571 to afford a median-priced, three-bedroom condo in this area.

      Median price is the price in the middle of a price list, meaning there are prices above and below it.

      It’s not the same as average price.

      To be able to afford a condo at $8,571, a household must have a before-tax monthy income of $28,570, where 30 percent is for housing costs.

      Households earning this much money have an average annual income of $342,840.

      The $8,571 figure involves the following assumptions in 2019: 10 percent down payment, five percent mortgage rate, 25-year amortization, $150-$250 monthly strata fees, and monthly property taxes at $2.56 per $1,000 of assessed value.

      The report was written by Theresa O’Donnell, who is Vancouver’s deputy director of current planning.

      The report was principally about a rezoning application on a West Side property.

      Diamond Group Architecture Inc. filed the application on behalf of Pinghan Holdings Ltd. to rezone 6031 Dunbar Street, a one-family dwelling property, for comprehensive development to allow two buildings containing nine rental townhouses.

      As part of her report, O’Donnell was comparing the cost of renting and homeownership.

      The proposed rental project consists of four two-bedroom units, three three-bedroom units, and two four-bedroom units.

      According to O’Donnell, market rentals “provide options which are significantly more affordable than average home ownership costs”.

      O’Donnell noted that the average rent for three-bedroom units in newer buildings on the West Side of the city is $3,876.

      This means that renters must have an average annual income of $155,040.

      The median annual income of renter households in Vancouver is $50,000.

      O’Donnell’s report recommended to council the referral to public hearing of the 6031 Dunbar Street  rezoning application.

      The report is part of council’s meeting agenda package Tuesday (June 23).