Vancouver millennials have the lowest discretionary income in Canada according to a new report from Vancity credit union.
It found a “typical” millennial couple that buys a property at an average Vancouver price will be going into debt by $2,745 per year due to not generating enough income.
Compared to millennials across Canada, ages 25 to 34, those in Vancouver have the least amount of discretionary spending.
The report looked at a Vancouver millennial household of two people who earn $72,291, which is the second-lowest rate in Canada. After putting aside money for expenses such as taxes, clothing, food, healthcare, public transportation and utilities, the report estimates about $41,609 would be left.
With ownership costs of about $44,354 annually for a property at an average cost in Vancouver and those millennial families would be in debt.
“The status quo isn’t good enough if we want this generation to be able to put down roots, possibly have a family and still enjoy a basic quality of life in Vancouver and Victoria,” said William Azaroff, Vancity’s vice-president of community investment, in a release.
Toronto has the second-most expensive housing market in Canada at $33,405 annually for a property at an average price purchased this year. It also had the next lowest discretionary spending income at $3,379 annually.
The report found while millennials in Victoria are better off than their counterparts in Vancouver, overall they still ranked third-lowest when it comes to discretionary income.
By comparison, millennial couples in Edmonton have the highest discretionary income in Canada at more than $47,000 annually.
For those in Vancouver, renting outside the city centre would help as they would have about about $27,940 annually in discretionary income for a typical one-bedroom home, or $15,183 for a three-bedroom home.
However, any couple that wants to have one child would be forced even further into debt.
If the child is in full-time paid childcare, at an average cost of $14,580 annually, that family would go into debt by $17,325 per year just to cover basic expenses, if they purchased property in Vancouver this year. By renting a three-bedroom home in the city, millennial families would save on shelter costs but will still only maintain $771 a year for spending, saving, giving or paying down debt.