The RBC Housing Affordability Measure has been published since 1985. It is a recognized benchmark that reflects the costs of owning a detached bungalow at market value. The higher the measure, the less affordable a home is. As an example, a measure of 32 per cent means that homeownership costs, including mortgage payments, utilities and property taxes, would consume 32 per cent of a typical household’s pre-tax income.
Using data from December 31, 2017, this chart shows housing affordability in key regions across Canada from the least affordable (Vancouver) to the most affordable (St. John, NB).
This should come as no surprise, especially to my friends in Vancouver and Toronto.
Those who bought into the real estate market many years ago see these prices as a potential windfall to fund their retirement years. Many of our investment clients have tapped into these gains.
|Region||Housing Affordability Measure|
|Vancouver Area, BC||85.2%|
|Quebec City, QC||32.7%|
|St. John’s NF||27.1%|
|Saint John, NB||25.4%|
Likelihood of Major Risks
We have written an article called “7 Things the Banks Don’t Tell You About Mortgage Protection Life Insurance.” We consider it essential reading for those who want to assure that their families are able to continue living in their home in event of death or serious illness or injury. We would also invite you to click below to download a more detailed special report.