The affordability of housing in the Vancouver area increased slightly in 2013’s fourth quarter but remains the worst of all of Canada’s major cities.
RBC’s housing affordability measure for Vancouver was 81.6 in Q4. This means homeownership costs for a standard detached bungalow – including mortgage payments, utilities and property taxes – make up 81.6% of a typical household’s monthly pre-tax income.
The national average score was 43.1.
Although Vancouver’s score is down 2.3 from 2013’s third quarter, it remains significantly higher than any of Canada’s other major cities (which RBC lists as Toronto, Montreal, Vancouver, Ottawa, Calgary and Edmonton).
Toronto came in a distant second, at 55.6.
“If it is possible to take some comfort from the earlier housing market slump, it would be in noting that it contributed to some improvement in Vancouver’s very poor affordability levels,” said Craig Wright, RBC senior vice-president and chief economist.
“Still, housing affordability remains uncomfortably stretched and this is likely perpetuating market stress in the area.”
British Columbia had the least affordable housing among the provinces, with a score of 67.7.
The most affordable housing was found in the Atlantic provinces at 31.6.
The most affordable major city in Canada was Edmonton, with a score of 33.3, followed by Calgary (33.8).
