Canada’s largest bank is warning that housing has never been less affordable. New data from RBC shows housing affordability is now the worst it has ever been as of Q4 2023. Income failed to keep up with mortgage payments, resulting in affordability erosion in every market they track. Forecast interest rate cuts are expected to make a slight improvement, but not much.Canadian Housing Affordability Has Never Been WorseCanadian housing affordability has never been worse, according to RBC. A median household would need to spend 63.5% of its income to carry the mortgage on a “typical” home in Q4 2023. That’s a 1.7 point increase from the previous quarter, and the largest share ever. For context, the peak of the 1990s bubble was 57% of income—almost affordable in contrast.Buying A House In Canada Has Never Been HarderCanadian ownership costs as a percentage of median household income.Source: RBC.Every market tracked saw affordability erode, warns the bank. The markets with the worst levels w...
