The share of income a household would need to cover ownership costs hit 53.9 per cent in the second quarter of 2018, the economists said in a report released Friday.
Based on their analysis, the cost of owning a home in the country hasn’t been this bad since 1990, when the share of income a household would need to cover ownership costs was 56 per cent.
“After years of worrying about deteriorating affordability, this trend has continued and unfortunately, when you look at where interest rates are going ownership affordability will continue to deteriorate for at least the next little while,” said Robert Hogue, a senior economist at RBC.
The lack of affordability can largely be blamed on rising interest and mortgage rates, he said.
He also found the entire country’s affordability is being dragged down by the Vancouver, Toronto and Victoria markets, where affordability has hit 88.4, 75.9 and 65 per cent respectively.
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