This is something our economic development agencies may want to use in their promotional activities.
The latest quarterly report on housing affordability issued by RBC Royal Bank says home ownership in Vancouver, Toronto and Victoria is an ‘impossible obstacle’ for most buyers. Only one-in-eight families in Vancouver is capable of buying a house based on prices and income levels. In Toronto and Victoria, it is a bit better at one-in-five.
Calling the situation in those three cities dreadful, the bank adds that Montreal and Ottawa are not far behind. But all other cities they track are actually quite affordable for middle class people.
In Saskatoon, it takes 33 per cent of the average income to buy the average home. Regina is slightly more affordable at 29 per cent. Both markets are beginning to show signs of improvement, according to the bank. Noting that resales have increased eight per cent this year in Saskatoon and seven points in Regina, they say the gloom is beginning to lift and it may be a time for our cities to promote themselves as a place where even average income earners can forego renting for ownership.