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

Surfing social media costs driver $500

VicPD nabs driver on the phone at red light

No fast-track for Oak Bay United development

Committee suggested best way to save money is to show design and listen to community

Traffic logistics for Lansdowne Road closure

Public Works talks alternative routes for 2.5 month closure of major transportation artery

Victoria a hot spot for millennials: new study

City ranks No. 2 for generation of Canadians seeking work-life balance

Victoria High turf field/track project hits important funding milestone

Alumni Association members guiding initiative that also includes lighting, new fieldhouse

Traffic logistics for Lansdowne Road closure

Public Works talks alternative routes for 2.5 month closure of major transportation artery

Food industry failing at voluntary sodium reduction: Health Canada

Health Canada report shows the food industry made no meaningful progress in curtailing salt levels

All the colours of the rainbow, in a cloud

Rare phenomenon spotted at Mount Washington

Solitary confinement in Canadian prisons unconstitutional: B.C. Supreme Court

Associations argued that solitary confinement was inhuman

1 in 4 B.C. consumers unable to pay bills, debt repayment: poll

Since interest rates first rose in July, poll suggests households across B.C. have had to tighten budget

SOGI rally disrupts school board meeting, but business carries on

Chilliwack school board makes statement in support of B.C.-wide gender identity teaching resource

B.C. husband and wife honoured for saving each other’s lives

Couple presented with Vital Link Awards for quick use of CPR

154 remote B.C. communities to get high-speed internet

Government funding to bring subsea fiber optic cable to connect people on the coast

Kelowna West byelection called for Feb. 14

Four candidate race to replace departed former B.C. premier Christy Clark

Most Read