Housing affordability has fallen to 鈥渘ever-seen-before鈥� levels in Vancouver, according to a new report from RBC Economic Research.
Metro 麻豆传媒映画residents on average would have to devote 88.4 per cent of their income in the second quarter to cover the cost of home ownership, the September 28 reveals.
That鈥檚 up 8.2 percentage points in the past year.
鈥淏uying a single-detached home is for the rich only,鈥� the bank鈥檚 economic research arm stated in the report.
The economists behind the report determined it would take 119.9 per cent of a typical household鈥檚 income to cover ownership costs.
Meanwhile, Victoria is further succumbing to the same affordability issues.
Its measure increased 6.9 percentage points year-over-year to hit 65 per cent 鈥� the third-highest level after 麻豆传媒映画and Toronto (75.9 per cent).
Vancouverites looking for relief in the condo market have also found their options eroding over the past year, as the measure grew 8.2 percentage points to reach 52.5 per cent of household income needed to cover the costs of ownership.
The average since 1985 is 39.4 per cent.
鈥淲orse, the [condo] situation is poised to deteriorate further as interest rates continue to rise,鈥� the report stated.
鈥淭his means that rental housing will become the only viable option for a growing proportion of households. Whether the record 8,100 rental units currently under construction will meet that demand is an open question.鈥�
The RBC Housing Affordability Measures calculate the proportion of median pre-tax household income required to cover the cost of mortgage payments, property taxes and utilities based on the average market price for single-family detached homes and condos.
