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

Okanagan-Shuswap weather: rain, clouds, and thunderstorm risk

Environment Canada forecasts dreadful weather for Thursday

Penticton pastry chef wins top honours at Vancouver’s Chocolate Challenge

Jalayne Jones creation, ‘Beer & Pretzels’, won

Community groups want Penticton land redesignated as park

1400 Riddle Road is currently leased the Penticton and Area Cycling Association

Sentencing for South Okanagan man who sent Christmas card to shooting victim

A South Okanagan dangerous offender tacked on another nine months of prison time

Video: Bizarre incident in Penticton alley leads to arrest of Calgary man

A man was witnessed jumping on a car ‘acting like an ape’

Nominate your favourite businesses for the Best of the South Okanagan

Join the Penticton Western News as they celebrate the Best of the South Okanagan awards

Improve your life and theirs, adopt a cat from the BC SPCA

The BC SPCA holds an adult cat adoption promotion

Black bear spotted near Salmon Arm elementary school

The bear was sighted at around 4 p.m. after school was out

Multiple black bear sightings in residential area near Okanagan elementary

Pictures of the bear have been posted on the Armstrong Community Forum frequently

AJ Reiter, Athlete of the Week

SOMBA Tiger’s AJ Reiter is the Athlete of the Week

RCMP probe if teen was intentionally hit with ski pole by mystery skier on B.C. mountain

The incident happened on March 20 on Grouse Mountain. Police are urging witnesses to come forward

Pipeline protester chimes in on Justin Trudeau’s B.C. fundraising speech

The government purchased the Trans Mountain pipeline and expansion project for $4.5 billion

Baby boom seniors putting pressure on B.C. long-term care: report

B.C. leads Canada in growth of dementia, dependence on care

Most Read