RBC Economics housing affordability measure compares costs of owning a typical home against the median pre-tax household income.

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

The City of Victoria is proposing a northern contraction from Haultain Street to Bay Street with a western contraction from Cook Street to Chambers Street for Fernwood. (Illustration/Google Maps)
Community association calls for input on Victoria boundary changes

City of Victoria proposes changes to neighbourhood borders

After seizing a handgun from his home on Tuesday, Victoria police arrested a wanted man on Wednesday after he fled officers on his bike. (Black Press Media file photo)
Man wanted on several warrants flees Victoria officers on bike

He was arrested after a brief struggle, transported to hospital with injuries

Divyesh Nagarajan, third from the left, has founded the Be My Friend project to bring support and companionship to vulnerable youth and address North Saanich’s food security challenges. (Courtesy of Divyesh Nagarajan)
Greater Victoria teen looks to connect vulnerable youth with a buddy, bolster food security

Be My Friend project was founded by St. Michaels University School student Divyesh Nagarajan

These are just a handful of Vancouver Island’s missing person cases. Clockwise from top left: Lisa Marie Young, Lindsey Nicholls, Micheal Dunahee, Jesokah Adkens, Belinda Cameron and Emma Fillipoff. (File photos courtesy of family members and police departments)
Gorge skull fragment could bring closure to one Greater Victoria missing person case

Skeletal remains found in Greater Victoria have not yet been identified

(Black Press Media file photo)
UPDATE: Sooke Road reopens after gas leak at Colwood Corners

SD62 warns afternoon buses could be delayed

B.C. Labour Minister Harry Bains in the B.C. legislature, May 13, 2019. (Hansard TV)
VIDEO: B.C. to provide 3 days of sick pay for COVID-19 absences

Province will support employers on cost, labour minister says

A nurse asks screening questions at an immunization appointment in Nanaimo earlier this year. (Shawn Wagar/Island Health photo)
Island Health appreciates nurses answering the call in challenging times

Health authority draws attention to National Nursing Week

BC Housing minister David Eby. (THE CANADIAN PRESS/Chad Hipolito)
Eby jabs back against Penticton mayor’s ad urging BC Premier to intervene in shelter dispute

Eby writes that Penticton’s ‘serious’ social issues won’t improve under leadership of the mayor

Provincial health officer Dr. Bonnie Henry updates B.C.’s COVID-19 situation at the B.C. legislature, April 29, 2021. (B.C. government)
B.C.’s COVID-19 rate creeps up again, 600 new cases Wednesday

One more death, 423 people in hospital with virus

B.C. Agriculture Minister Lana Popham takes questions in the B.C. legislature in 2017. (Hansard TV)
UPDATE: B.C. will fund another year of fresh fruit, vegetables, milk in schools

John Horgan government working on school meal program

Vancouver mayor-elect Kennedy Stewart addresses supporters in Vancouver on Sunday, Oct. 21, 2018. THE CANADIAN PRESS/Darryl Dyck
Vancouver mayor says there’s no time to redo details of drug decriminalization plan

Kennedy Stewart says a federal election could see the small window of opportunity close on the city’s bid for an exemption from criminal provisions on simple possession of small amounts of drugs

Premier Mike Horgan received his first dose of a COVID-19 vaccine. (Facebook/John Horgan)
More than 50% of people eligible in B.C. have received 1st vaccine dose

‘We’ve made extraordinary progress together over the past few weeks,’ says Premier Horgan

The Independent Investigations Office of B.C. is investigating the shooting of a Tla-o-qui-aht First Nation woman in the Ucluelet First Nation community of Hitacu on May 8. (Black Press Media file photo)
Indigenous woman shot by police was holding a replica gun, says Ucluelet First Nation

Woman has been identified as a member of the Tla-o-qui-aht First Nation

Most Read