Home Ownership In The South Cariboo More Costly Than Williams Lake & Quesnel

South Cariboo residents will need 63.2 percent of their pre-tax income to secure a home.

That’s according to the 2024 House Affordability Indicator from the BC Northern Real Estate Board (BCNREB).

Chair of BCNRB Victor Khong said the House Affordability Indicator is a yardstick, a way of assessing how affordable different regions in the province are compared to average incomes.

For example, that affordability measure of 63.2 percent means that home ownership costs, including mortgage payments, utilities, and property taxes for a given year take up to 63.2% of a typical household’s pre-tax annual income.

“It’s one of things they look at, the total cost of ownership as opposed to something like how much can you afford based on today’s interest rates,” Khong said, “It’s a much more precise and accurate estimator of what it would cost an individual to own a home.”

The Housing Affordability Indicators are much lower in Quesnel at 35.6% and 38.2% in Williams Lake.

So why does the 100 Mile House area command a premium over Williams Lake and Quesnel.

“Two reasons. Number one, 100 Mile House is within a 5-hour driving time to the Lower Mainland,” Khong said, “Quesnel and Williams Lake are measurably further away. The other reason which is not obvious, is that 100 Mile House is not located in a foreign buyer ban zone. That was set to expire in January 2025 but was extended by the Federal government to January 2027. Whereas Quesnel and Williams Lake are captured in a foreign buyer ban zone reducing the pool of potential buyers that can purchase real estate in these areas.”

Khong noted that the Interlakes area is desirable to home buyers.

“You tend to get more property in terms of acreage and the Interlakes area is home to Sheridan Lake, Green Lake, Horse Lake, and a few of the other desirable lakefronts. They are looked at as an extended area to get a house on a lake whether it’s seasonal or year round.”

According to the Canada Mortgage and Housing Corporation, housing is considered “affordable” if it costs less then 30% of a household’s before tax income.