Housing affordability in British Columbia declined in 2013’s second quarter, according to an RBC Economics Research report released August 27.
The escalation was driven by increases in the price of bungalows and two-storey homes, the report states.
“The weakening in affordability is a bit disappointing and the latest setback disrupting the way to healthier housing market conditions in British Columbia,” said Craig Wright, senior vice-president and chief economist at RBC.
“The silver lining is home-ownership costs in the province are still lower than a year ago despite moving up in the second quarter.”
RBC’s housing affordability measures the proportion of pre-tax household income needed to service the cost of owning a home at market value.
The measure increased by 1.1 percentage points to 67.6% for bungalows and by 0.8 percentage points to 72.8% for two-storey homes, the report states.
The measure for condos increased by 0.1 percentage point to 33.8%.
