Quote:
Originally Posted by Hed Kandi
This is interesting because Demographia's affordability survey states that Vancouver has an average household income of $63,800. Meanwhile, Calgary averages $91,400 per household and Toronto respectively at $73,600.
http://www.demographia.com/dhi.pdf
It seems to me that Vancouver's overpriced real estate market is the cause of the over inflated statistics found in the Wealthscapes Report.
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Ah, you're confusing annual employment income with wealth. Not the same!
You can generate wealth by earning a salary, or by investing in real estate, stocks and bonds or businesses etc.
This is a simple calculation of NET WORTH - assets minus liabilities. Yes, real estate holdings will affect it
Holdings in stocks, bonds, RRSPs and cash will also affect it, and, can also swing in value too for that matter
All holdings 'on paper' will positively affect it. Mortgages, credit lines and credit card debt will negatively affect it.
The demographia report you reference has nothing to do with wealth. It is a theoretical housing affordability calculation based on many assumtions. BTW, it uses an inflated average house price for metro Vancouver (excludes the more affordable housing in areas like Surrey, Langley). The household incomes they use seem to be a bit strange too (different years?) - the median income they use for Victoria is completely out to lunch LOL!
Median annual household income in Canada by CMA (2006-2010) -
http://www.statcan.gc.ca/tables-tabl...il107a-eng.htm