After three years of deteriorating housing affordability in Canada, a measure of relief arrived for prospective home owners, according to the latest RBC Economics Housing Trends and Affordability Report.
The broad-based softening of housing market activity helped lower home ownership costs nearly everywhere in Canada, taking down RBC’s aggregate housing affordability measure by 0.7 percentage points to 51.9 per cent last quarter. This measure is calculated as a share of household income. A lower number means that buying a home is more affordable.
Still, the fourth-quarter relief barely made a dent in Vancouver and Toronto where affordability remains at crisis levels. Owning a home in both of these markets, as well as in Victoria and increasingly Montreal, is a huge stretch for ordinary buyers.