RBC Economics housing affordability measure compares costs of owning a typical home against the median pre-tax household income.

B.C. housing affordability worsens: report

Real estate market uptick suggests end to recent cooling phase, says RBC Economics

The cost of owning a standard detached bungalow in Vancouver now devours 82 per cent of a typical household’s income.

That calculation, from RBC Economics Research, is among the findings in its recent housing trends report showing home affordability has taken a hit in B.C. in recent months.

RBC’s home affordability measure compares home ownership costs – mortgage payments, utilities and taxes – to median pretax household income and provides plenty of fodder for those who think B.C. real estate costs too much.

The Vancouver measure of 82.2 for a bungalow is up 2.2 points from the previous quarter and is far above Toronto’s 54.5, Montreal’s 38 and Calgary’s 33.

The measure for B.C. as a whole also rose to 67.6 for bungalows, 72.8 for two-storey homes and 33.8 for condos.

In Vancouver, owning a two-storey home took 85.8 per cent of household income, while a condo took 40.7 per cent.

“The weakening in affordability is a bit disappointing and the latest setback disrupting the way to healthier housing market conditions in B.C.,” RBC chief economist Craig Wright said.

But despite the recent uptick in prices, Wright noted home ownership costs in B.C. are still lower than a year ago, due to a nearly two-year long cooling stretch in the real estate market.

Fears of a steep drop in Vancouver real estate appear to have abated, he said, suggesting the “market correction has run its course and that the risk of a catastrophic outcome has greatly moderated.”

Just Posted

Teddy bears ready to hit the ice with Victoria Royals

Dec. 15 game brings back annual tradition of donated toys

Two people taken to hospital following crash on West Saanich Road

An SUV left the road and crashed just after 7:30 Wednesday morning

Vancouver Island man runs 500 km for anti-trophy hunting campaign

The 13-day run saw Giordano Corlazzoli run nearly a marathon a day

Travel tips for passing through the Victoria airport this holiday season

It may be small in size but Victoria International Airport was voted one of the top 10 busiest in Canada

Taxpayer watchdog treats Victoria to candy cane awards

Grumpy Taxpayer$ honours councillors and boards who helped with transparency in 2018

Miniature Christmas Land is back in Saanich

Local family continues to open intense Christmas-themed basement to public

POLL: Are you dreaming of a white Christmas?

The rain Vancouver Island is famous for is coming down in buckets,… Continue reading

Humboldt Broncos, cannabis, Fortnite: Here are Canadians’ top Google searches for 2018

When celebrities died or Canada Post went on strike, Canada turned to Google

B.C. billionaires worth 5,845 times average middle-income household

Economists argue for changes to Canadian tax system benefitting rich

Condominium market still ‘a lot better’ than normal in Vancouver suburbs

The Fraser Valley, east of Metro Vancouver, has long been considered a more affordable haven for first-time homebuyers.

Vancouver Island artisan says new fish farm brand too close to his Indigenous name

Marine Harvest prepares to change name to Mowi amid objections from Mowisaht Designs

Retired B.C. teacher a YouTube Sudoku sensation

A retired Kelowna teacher has amassed quite the following online by teaching the art of solving a Sudoku puzzle.

UN chief returns as climate talks teeter closer to collapse

Predictions from international climate expert, warn that global warming is set to do irreversible environmental damage.

Trump’s willingness to intervene in Meng detention roils Canada’s justification

The International Crisis Group said Tuesday, Dec. 11 it’s aware of reports that its North East Asia senior adviser Michael Kovrig has been detained.

Most Read