Housing affordability in Canada’s largest city continues to be “dreadful,” according to a new report from the Royal Bank of Canada (RBC).
According to the ‘Housing Trends and Affordability’ report for June 2019, affordability has improved recently in the country and it’s currently possible for most families to own a home in nine of the 14 markets RBC tracks. However, the dream of owning a home in Toronto still remains “elusive” for most buyers.
The proportion of ownership capable families is highest in Canada’s most affordable markets which includes Saint John, St. John’s, Regina, Quebec City, and Halifax.
However, it’s a very different story in Toronto where only one in five families makes the necessary income to manage ownership costs, according to RBC.
The report also revealed that while owning a condo apartment opposed to a home opens the ownership field to more families, just one in five families are capable of doing so in Toronto compared to most other markets, where buying a condo apartment is within the reach of close to two-thirds of families.
According to the June report, Toronto homebuyers had a “tiny break” in affordability last month.
Since reaching a generational high of 67.1% in late-2016, RBC’s aggregate measure for the area eased by a grand total of only 1.1% points to 66.0%, which RBC calls “negligible.”
This means that owning a home in Toronto is as challenging as ever.
“With prices heading in a modest upward trajectory, RBC sees little prospects for meaningful improvement in the near term,” said Robert Hogue, Senior Economist, RBC.
“Despite kicking into gear late, the spring season brought compelling evidence that a (slow) market recovery is now underway,” said Hougue, adding, this will keep demand and supply in balance, and support further modest price gains.