<img height="1" width="1" src="https://www.facebook.com/tr?id=390674378043480&amp;ev=PageView &amp;noscript=1"/> Housing Affordability Study - RBC - The Storey Team : Toronto Real Estate

The Storey Team : Toronto Real Estate

Housing Affordability Study - RBC

28 March 2019
Tom Storey

RBC has just released our latest quarterly Housing Affordability study pinpointing cross-country trends in housing affordability in provincial and major metropolitan housing markets.

Highlights of the report:

  • Home ownership costs dipped almost everywhere in Canada in the fourth quarter of 2018. Nation-wide, the share of income needed to cover the costs of owning a home fell 0.7 percentage points to 51.9%.
  •  An easing in property values brought most of the affordability relief. The mortgage stress test, earlier increases in interest rates and policy tightening in British Columbia pushed many buyers to the sidelines. Home prices declined for only the second time in five years
  • The fourth-quarter relief barely made a dent in Vancouver and Toronto.  Affordability is still at crisis levels in these markets and pressure is intensifying in Montreal.
  • More (incremental) relief on the way? We have lowered our profile for interest rates and now expect home prices to be flat at best overall in Canada this year—with further price declines likely in Vancouver and Alberta. With household in come still set to rise, the outlook for affordability has brightened somewhat.

Read the full report here