Homes becoming less affordable: survey
The cost of home ownership is increasing across the country.
The cost of home ownership is increasing across the country.
The percentage of earnings being put toward home ownership costs in Canada is rising, a trend that is likely to continue, according to a Royal Bank of Canada report.
The bank’s quarterly survey revealed that home affordability fell in markets across the country in the first quarter — most visibly in Vancouver, where an estimated 72% of household income is required to pay the mortgage, property taxes and utilities on a bungalow.
Comparatively, home owners in Toronto require an estimated 47.5% of household income for the same expenses.
The report suggests that with expected increases in interest rates, owning a home in Canada is set to become an increasingly expensive endeavour.
The affordability readings on a standard bungalow in Canadian major cities were:
• Vancouver 72.1% (up 3.4 percentage points from the last quarter),
• Toronto 47.5% (up 0.8 of a percentage point),
• Montreal 43.1% (up 2.0 percentage points),
• Ottawa 39.0% (up 0.4 of a percentage point),
• Calgary 35.9% (up 0.9 of a percentage point)
• Edmonton 31.5% (up 0.5 of a percentage point).
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