It's official, no one can afford to own a home in Vancouver!
RBC economics released its most recent housing affordability survey which showed that in Vancouver 74% of ones's pre-tax household income is needed to service the costs of owning a home. This compares with 47% in Toronto and 42% in Calgary. I knew the B.C. market was bubbly, but this is ridiculous. Apparently this affordability level of 74% is the worst on record, ever.
For example, an Affordability reading of 50 per cent means that homeownership costs, including mortgage payments, utilities and property taxes, take up 50 per cent of a typical household's monthly pre-tax income.
This trend is expected to cool though, as interest rates are coming down, house prices are predicted to moderate, and incomes are expected to grow.