Housing affordability continues to worsen in multiple Canadian cities, having recently declined at a rate not seen in the last 27 years.
A new report by the National Bank of Canada revealed that housing affordability has declined at a massive rate. In its Housing Affordability Monitor report, National Bank of Canada states that housing affordability declined by 3.2% during Q2-2021.
In addition, mortgage payments now account for 45% of household income.
“Higher levels for home prices are consequential on accessibility for potential homebuyers,” wrote report authors Kyle Dahms and Alexandra Ducharme. “Rising prices have increased the burden of accumulating the minimum down payment.”
In Toronto, mortgage payment as a percent of income (MPPI) increased by 2.4% for condos, and 5.4% for non-condos on a quarter-to-quarter basis, totaling 37.3 percent and 65.6%.
A Toronto property is now at an average price of $1,146,667. Condo properties have an average price of $652,308.
In Vancouver, the price of a property increased 5.8% during the second quarter, now at $1,472,563, while an average price of a condo is at $655,352.