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RBC Economic Research - Quarterly Housing Affordability Study

Tina Myrvang

Client Care Lead
Staff member
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Nov 15, 2010
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We have 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:

  • Short-lived reprieve. RBC’s main affordability measure for Canada in the first quarter reversed the slight improvement it saw late last year.
  • Higher interest rates were the main culprit. A third-straight rise in mortgage rates boosted ownership costs, which outpaced household income gains.
  • Affordability is a major issue in two of Canada’s largest markets. It’s at crisis levels in Vancouver and poses a tremendous challenge for many Toronto-area buyers despite improving in the past two quarters.
  • Modest deterioration in most markets. Still, outside Vancouver, Victoria and Toronto, the weight of ownership costs generally remains in line with historical norms.
  • Unlikely to get any easier. The prospect of more interest rate hikes in the period ahead poses material risk of further affordability erosion in Canada. The odds of this ultimately occurring will also depend on the degree to which household income increases.


Link to the new Housing Affordability report

To view, print, and download the new report, click on the following link:

http://www.rbc.com/economics/economic-reports/pdf/canadian-housing/house-jul2018.pdf
 
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