The December RBC Economics Research Report Housing Trends and Affordability says that “despite cooling home resale activity overall, housing affordability deteriorated further across all markets in Canada in the third quarter of 2016”.
RBC’s affordability measure rose for the sixth consecutive quarter to 44.3%. RBC says that number represents the most stressed affordability level in Canada in eight years. The Greater Toronto Area shows the most significant erosion in affordability in Canada.
Vancouver remains the market with the steepest ownership costs as a share of household income at 92%. This is the highest ever reached anywhere in the country since RBC began compiling housing affordability stats in the mid 80’s.
The report provides detail on affordability in other provinces in Canada.