Question

If 42% of the income is required to cover ownership costs in Canada, and 52.5% of

the income is needed in Vancouver, the housing market in Vancouver is:
a. More affordable than Canada
b. Less affordable than Canada
c. As affordable as the rest of Canada
d. In equilibrium like the rest of Canada
e. None of the above

Answer 1

Housing in Vancouver is less affordable than the rest of Canada, as it requires a greater percentage of income to cover ownership costs.

Step-by-step explanation:

If 42% of the income is required to cover ownership costs in Canada, and 52.5% of the income is needed in Vancouver, the housing market in Vancouver is less affordable than Canada. This is because a higher percentage of income is required to cover the housing costs, indicating that the cost relative to income is higher and, therefore, less affordable for the average resident compared to the rest of Canada where a lower percentage of income is required for ownership costs.