{"id":29109,"date":"2017-12-22T16:41:37","date_gmt":"2017-12-22T21:41:37","guid":{"rendered":"http:\/\/olduvai.ca\/?p=29109"},"modified":"2017-12-22T16:41:37","modified_gmt":"2017-12-22T21:41:37","slug":"canadian-housing-affordability-hits-27-year-low","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=29109","title":{"rendered":"Canadian Housing Affordability Hits 27 Year Low"},"content":{"rendered":"
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Canadian Housing Affordability Hits 27 Year Low<\/a>\u00a0<\/span><\/h3>\n<\/header>\n<\/div>\n<\/div>\n<\/div>\n
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Real Estate Hasn\u2019t Been this Unaffordable Since 1990 per RBC<\/strong><\/p>\n

Nothing says Merry Christmas like a 27 year low for Canadian housing affordability. That\u2019s right, real estate across Canada has not been this un affordable since the year 1990 per RBC. Spoiler alert house prices tumbled shortly thereafter.<\/p>\n

RBC Bank released their updated Q3 numbers<\/a> for housing affordability. To no surprise, Vancouver leads the nation in the most unaffordable market to buy a home. Followed by Toronto and then Victoria.<\/p>\n

\u201cThe deterioration in the latest two quarters, in fact, put Vancouver buyers in the worst affordability position ever recorded in Canada.\u201d<\/p>\n

\"RBC
Source: RBC<\/figcaption><\/figure>\n

Vancouver Un affordability Sets New High In Canada<\/strong><\/p>\n

\u201cThe area experienced the sharpest affordability drop among Canada\u2019s major markets between the second and third quarters. RBC\u2019s aggregate measure surged by 5.3 percentage points to 87.5%. This represents a new record high for any market in Canada.\u00a0We see further downside to Vancouver\u2019s home ownership rate in the period ahead. The rate fell from 65.5% in 2011 to 63.7% in 2016.\u201d<\/p>\n

\"Vancouver
Source: RBC \u2013 Vancouver housing affordability Q3 2017<\/figcaption><\/figure>\n

High Un affordability Tends to Lead to Recessions<\/strong><\/p>\n

What RBC didn\u2019t mention in their report is the correlation between elevated house prices that cause affordability issues and recessions. When too much household money is spent servicing mortgage payments it eventually becomes a drag on consumer spending and ultimately triggers a recession.<\/p>\n

\"Canadian
Source: Better Dwelling<\/figcaption><\/figure>\n

This is not to suggest a recession is imminent. But when\u00a0the percent of income the median family would have to use to service debt\u00a0pushes above 50% in Toronto and Vancouver, a recession typically follows in Canada<\/a>. Currently Toronto is at 71.7%, and Vancouver is at 79.87%.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Canadian Housing Affordability Hits 27 Year Low\u00a0 Real Estate Hasn\u2019t Been this Unaffordable Since 1990 per RBC Nothing says Merry Christmas like a 27 year low for Canadian housing affordability. That\u2019s right, real estate across Canada has not been this un affordable since the year 1990 per RBC. Spoiler alert house prices tumbled shortly thereafter. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[103,15366,17631,17496,17632],"class_list":["post-29109","post","type-post","status-publish","format-standard","hentry","category-economics","tag-canada","tag-canadian-housing","tag-housing-affordability","tag-steve-saretsky","tag-vancitycondoguide"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/29109","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=29109"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/29109\/revisions"}],"predecessor-version":[{"id":29110,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/29109\/revisions\/29110"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=29109"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=29109"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=29109"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}