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

Sandra Krauer, Penticton Mayor John Vassilaki and Barb Hoolaeff were in Skaha Park to announce the return of Ribfest for September, 2021. (Brennan Phillips - Western News)
Ribfest returns to Penticton

Festival runs from Sept. 17 - 19 at Skaha Lake Park with proceeds going to new splash park

Fiery crash on the Okanagan Connector between two semis. (Facebook)
One dead after fiery Okanagan Connector crash between two semis

DriveBC estimates road won’t be open until 5 p.m.

A tent housing a mobile vaccination clinic. (Interior Health/Contributed)
Second dose vaccinations accelerating throughout region: Interior Health

To date, more than 675,000 doses have been administered throughout the region

Turn out is high in advance voting for the Penticton by election taking place Saturday, June 19, 2021. (Screen shot)
Over 2,500 already voted in Penticton by-election

General voting day is Saturday, June 19

The City of Penticton is beginning plans to revitalize its north entrance on Highway 97. (Jesse Day - Western News)
Penticton reviewing ideas on how to make the city’s north gateway more vibrant

The city has plans to redevelop the area into a welcoming and attractive entrance

Bear wanders Kelowna on June 15. (Michelle Wallace/Facebook)
Bear climbs fence, uses crosswalk in Kelowna

The bear was spotted on Baron Road Wednesday evening

Birtch Parlee is one of approximately 132,000 transgender people living across the nation, according to Statistics Canada. Photo submitted
Transgender in a small town – Princeton B.C.

“I buried it. I pushed it down. I lived a lie.”

Surrey Mayor Doug McCallum speaks at a press conference in August 2019 about provincial government approval of the city’s change to a municipal force, joined by councillors (from left) Mandeep Nagra, Allison Patton and Doug Elford. Members of the National Police Federation claim there is still no transition plan in place although Surrey RCMP’s contract with the city is due to end March 31.(File photo)
Elections BC approves petition application for referendum on Surrey policing transition

Application was filed under Recall and Initiative Act by the widow of a Surrey murder victim

(Black Press Media stock photo)
RCMP name 2015 homicide victim near Creston, investigation ongoing

26-year-old Clint Wolfleg was found dead in a private residence on May 31, 2015

Queen’s counsel Paul Doroshenko, a Vancouver lawyer, has been suspended from practice for two months after admitting that his firm mismanaged $44,353.19 in client trust funds. (Acumen Law)
High-profile B.C. lawyer suspended over $44K in mismanaged client trust funds

Queen’s counsel Paul Doroshenko admits to failing to supervise his staff and find, report the shortage

A GoFundMe campaign has been launched to collect donations ahead of Kristy Handel’s 33-kilometre run for Chelaine McInroy (pictured) to cover costs for a new prosthetic leg after her June 12, 2021, surgery. (GoFundMe)
Friend running to raise funds for Armstrong woman’s new prosthetic leg

33-km Run for Chelaine to help athlete cover medical costs from latest surgery

The Okanagan Eatery owner Chelsea Enns brings with her years of front-of-house and management experience to Vernon’s newest restaurant. (Caitlin Clow - Morning Star)
Vernon’s newest restaurant serves up Okanagan eats

Trio brings passion for locally sourced dishes and smash burgers to the table

House Majority Whip James Clyburn, D-S.C., center left, reaches over to Rep. Maxine Waters, D-Calif., joined by Speaker of the House Nancy Pelosi, D-Calif., center, and members of the Congressional Black Caucus as they celebrate the Juneteenth National Independence Day Act that creates a new federal holiday to commemorate June 19, 1865, when Union soldiers brought the news of freedom to enslaved Black people after the Civil War, at the Capitol in Washington, Thursday, June 17, 2021. It’s the first new federal holiday since Martin Luther King Jr. Day was created in 1983. (AP Photo/J. Scott Applewhite)
Biden to sign bill making Juneteenth a federal holiday

New American stat marks the nation’s end of slavery

The Summerland branch of the Royal Canadian Legion has cancelled its Canada Day celebrations for 2020 because of the ongoing COVID-19 pandemic. (Summerland Review file photo)
Summerland Legion cancels Canada Day events

Pandemic restrictions led to decision on annual celebration

Most Read