Affordability Worsened in Q2 as High Home Prices Persisted, Says RBC

RBC Economics has reported that despite historically low interest rates, housing affordability has worsened in most major markets across Canada in Q2 2023. RBC's latest Housing Trends and Affordability report has shown that the average homeowner now needs to devote 45.3% of their household income to ownership costs, a 2.7 percentage point increase from Q1 and the fourth straight quarterly rise. Vancouver and Toronto have seen the largest deterioration in affordability, with 63.5% and 59.1% of household income needed to cover ownership costs, respectively. RBC economist Robert Hogue suggests that high prices have contributed to a generalized deterioration in affordability. However, the affordability measure for condos remains relatively more affordable. RBC’s national condo measure was 32.6% in Q2.