James Alexander Michie: Crisis, the cost of acquiring a home reached its highest level – CBC News

Vancouver James Alexander Michie

Vancouver residents would need nearly 88 per cent of their household income to buy a home, while Toronto residents would need more than 74 per cent of their income to cover the cost, the RBC study said | James Alexander Michie

Author: James Alexander Michie

In the first quarter of this year, the cost of purchasing a home in Vancouver achieved the highest levels recorded according to the RBC Housing Affordability Measures study.

According to economists, this could be a “level of crisis” since the affordability of a home came to be positioned as the most expensive market in Canada to the point that it would take almost 88 percent of the family income to buy a house in Vancouver, on the other hand Toronto residents would require more than 74 percent of their income to cover the cost.

It is important to note that the costs of Metro Vancouver are not likely to help the affordability of housing. The housing market in Vancouver declines while prices remain high despite different measures introduced by regulators and the government in the last two years in search of an attempt to placate the prices of properties in Vancouver.

The reference price for a house in Vancouver increased to $ 1,094,000 in May, even when sales fell 35 percent from a year ago.

Undoubtedly, affordability represents a great challenge for buyers in the Toronto area despite having improved in the last two quarters, as well as being a significant problem in Canada’s largest markets.

The main difficulty facing Vancouver and Toronto is the supply. There simply is not enough supply, while demand is increasing due to demographics. If such a conflict is now considered a crisis, it will be much worse in the long term if it is not solved quickly and efficiently.

Take a read here: https://www.cbc.ca/news/business/housing-affordability-prices-1.4731713

Source: Rajeshni Naidu-Ghelani | CBC News

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