Another day, another damning report on Vancouver’s red hot real estate market. This time it’s the turn of the RBC Housing Affordability study, which states that it “has never been so unaffordable to own a single-detached home in the Vancouver area.”
The research describes Vancouver as “dangerously” unaffordable. “With an average price exceeding $1.2 million, single-detached homes have long since slipped out of reach for the average local homebuyer,” the report reads. “Owning a single-detached home at market prices in the Vancouver area clearly is out of reach for an average household or for the vast majority of households for that matter.”
RBC’s measure for affordability – which is based on the median income of Vancouver-area households compared to the cost of servicing a property – reached an astounding 109.0% in the fourth quarter of 2015, which was up by 4.3% from the previous quarter. The figures imply that only a select few can afford to own such properties at current market prices.
There is better news for condos, however, which remain comparably more affordable with an affordability measure of 44.1%.
“Fortunately, owning a condo apartment is still within reach for many in the area—and the only realistic option for first-time buyers,” the report states, “although, it too has become slightly less affordable in the last two quarters.”