City’s housing affordability better, but still bad: RBC

Buying a home in Vancouver got slightly more affordable this quarter, but the city’s real estate prices remain sharply out of line with those in ...

Buying a home in Vancouver got slightly more affordable this quarter, but the city’s real estate prices remain sharply out of line with those in the rest of the country, according to RBC Economics Research’s Housing Trends and Affordability Report released today.

The housing affordability measure used in the report indicates the percentage of a typical household’s monthly pre-tax income that would go to homeownership costs.

For Vancouver, the measure was 83.2% for the quarter, down 5.8% from the previous period.

Despite this drop, Vancouver’s prices remain considerably higher than those in other cities across the country, including:

  • Toronto: 52.4% (down 0.7% this quarter);
  • Montreal: 40.2% (up 0.1%);
  • Calgary: 38.3% (down 0.7%); and
  • Edmonton: 31.1% (down 0.6%).

“The largest improvements in housing affordability across Canada’s largest cities in the third quarter barely dented Vancouver’s status as the country’s most expensive city in which to buy a home,” said RBC senior vice-president and chief economist Craig Wright. “It’s important to note, however, that the situation is much less severe elsewhere in the province.

“If you look at Victoria, for instance, the share of income needed to carry the costs of a mortgage at market price is almost half that of Vancouver.”

ecrawford@biv.com

@EmmaCrawfordBIV

comments powered by Disqus

Also Read

More From Real Estate

The sale could end up being one of B.C.'s biggest commercial real estate deals in 2015

Read Article

When the Aquilini Investment Group successfully trumped other bidders for 670 acres of vineyard land in Washington state in November 2013, there was a lot ...

Read Article

Interest-rate-sensitive real estate investment trusts outpacing Toronto Stock Exchange

Read Article

Area was first built out with 560,000 square feet of office space and 68,000 square feet of retail space

Read Article

Tyler Orton on New Westminster's tallest office tower, Anvil Centre, which sits empty

Read Article

Subscribe to our mailing lists

* indicates required

Newsletters

* You can modify your newsletter subscriptions at the bottom of any newsletter you receive.
×