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

More funding for Harrison tourism projects on the horizon

Village could see increased funding by 2020

Most cows saved during massive fire on Agassiz farm thanks to fast work of farmers, neighbours

Agassiz Fire Department responded to late night call Wednesday

Risk of thunderstorm this afternoon for Vancouver Island and Lower Mainland

A special weather statement calls for heavy rain and wind over the next 48 hours

Massive fire destroys Agassiz dairy barn

Reports say at least one cow died in the blaze

Chilliwack firefighter seeking to reunite Rosedale VFD’s old auxiliary fire pump with antique engine

It’s been four decades, but Pat Liebault is hoping to reunite Rosedale’s auxiliary pump and engine

Conservation officer frees B.C. deer from flotation gear mishap

BC Conservation Officer Service is reminding residents to keep backyards clear of entanglements

Ottawa to name new ambassador for women, peace and security, Freeland says

Chrystia Freeland also confirmed Canada would spend about $25 million to fund number of initiatives

‘A little bright spot:’ Ottawa residents rescue dog trapped beneath rubble

Freelance journalist says rescue of a dog trapped under rubble was happy ending amid chaos in Ottawa

B.C. deaf community wants different sign languages on federal accessibility act

Advocates also want Indigenous Sign Language to be recognized on the Indigenous Language Act

Remainder of Vancouver Whitecaps season filled with ‘must-win’ games: coach

With Vancouver currently sitting four points out of a post-season spot, each contest is crucial

VIDEO: B.C.-born firefighter remembered by MP in emotional speech

Family asks first responders to look after one another in wake of suicide, growing concerns of PTSD

Airline has ‘close call’ with drone while en route to B.C. airport

Jazz Aviation reported the drone sighting near Vancouver to the RCMP and Transport Canada

Tragic accident claims life of B.C. toddler

Fundraising effort has been created to help mom and family

B.C. nanny charged with sex abuse of 3 children

Saanich Police seek potential victims of Johnathon Lee Robichaud from Central Saanich

Most Read