Results from the 16th annual Demographia International Housing Affordability Survey, which analyzed 309 different housing markets in the USA, Canada, the UK, Ireland, New Zealand, Australia, Singapore, and China, were recently released.
Included in those 309 markets, 92 major metropolitan cities and three mega-cities of more that 10 million residents (London, Los Angeles, and New York City) were evaluated. Surprising to many Canadians was that two of Canada’s cities ranked in the Top Five Most Unaffordable Cities in the World: Vancouver as #2 and Toronto as #5.
According to the Vancouver MLS, the benchmark price for detached homes in Vancouver was $1,621,200 and the average single family home in Toronto sold for $1,371,191 in February 2021. Housing prices in both cities have been surged forward by low inventory and very low interest rates, with sellers seeing their homes spending only days on the market and often selling above asking price.
Many Canadian downsizers are trading in their urban homes and flocking to smaller cities, where housing is much more affordable, and looking to the easy management of condos or townhomes. For example, townhomes and condos on Vancouver Island, a popular Canadian retirement region, had benchmark prices of $466,200 and $325,000, respectively, in 2020.
What does this mean for Mexico? Canadian buyers who have paid off the mortgage on their home in Canada or have sufficient equity in the home, are now in an envious position because in selling their Vancouver or Toronto home they can not only downsize to a popular location in Canada to enjoy their summers, but they can also easily afford a winter property in Mexico.
Essentially, home prices in urban centers in Canada are now so high, that many buyers can afford two properties, a summer property in Canada and a warm tropical home in winter, all without requiring any home financing and often with liquid equity left over.
Canadian buyers from Toronto and Vancouver have an exceptional opportunity to now have the best of both worlds for retirement living, and with direct flights from 16 cities in Canada, you’re just an easy journey away from one of those worlds to the other.