{"id":17679,"date":"2025-07-03T19:34:08","date_gmt":"2025-07-03T19:34:08","guid":{"rendered":"https:\/\/finderica.com\/?p=17679"},"modified":"2025-07-03T19:34:08","modified_gmt":"2025-07-03T19:34:08","slug":"homeownership-costs-in-canada-fall-to-most-affordable-level-in-three-years","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=17679","title":{"rendered":"Homeownership costs in Canada fall to most affordable level in three years"},"content":{"rendered":"
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It hasn\u2019t been this affordable to own a home in Canada in three years, according to RBC Economics.<\/p>\n

Its latest national affordability measure dropped to 55.1% in the first quarter of 2025, down from 60.7% a year ago. The improvement was driven by interest rate cuts, small declines in home prices, and steady household income growth.<\/p>\n

\u201cGenerally improving trends are likely to be sustained,\u201d said<\/a> Robert Hogue, assistant chief economist at RBC. \u201cWe see earlier interest rate cuts continuing to favourably impact affordability with price declines in some markets further aiding the process.\u201d<\/p>\n

But while conditions are improving, affordability remains far from pre-pandemic levels. \u201cSteady improvements in the past five quarters have reversed only roughly a third of the loss of affordability nationwide,\u201d Hogue said. \u201cBuying conditions remain extremely challenging in many major markets.\u201d<\/p>\n

He added that condo buyers have seen the biggest improvements. \u201cIn some parts of the country\u2014including Edmonton, Saskatoon, Regina, Winnipeg and even Toronto\u2014the condo affordability measure is now effectively back to where it was before the pandemic,\u201d he noted.<\/p>\n

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Source: RBC Economics<\/em><\/strong><\/figcaption><\/figure>\n

Vancouver, Toronto still the least affordable markets<\/strong><\/h2>\n

Even with improvements, owning a typical home in Vancouver still requires 92.7% of a median household\u2019s income. Toronto stands at 68.3%, followed by Montreal at 49.5%.<\/p>\n

Calgary (42.3%), Ottawa (44.3%) and Edmonton (33.0%) remain among the more affordable large markets.<\/p>\n

\u201cPrice drops also quickened the improvement in condo affordability in Vancouver and Victoria\u2014Canada\u2019s two other priciest markets\u2014though both still have a lot more lost ground to recover,\u201d Hogue said.<\/p>\n

RBC expects further relief ahead<\/h2>\n

\u201cWe think interest rate cuts, further price drops in some markets and sustained income gains are set to reverse approximately half the rise in RBC\u2019s composite affordability measure for Canada during the pandemic by year end,\u201d Hogue added.<\/p>\n

But the bank cautions that \u201cany further progress gets trickier once interest rates stabilize,\u201d as future improvement will depend entirely on home prices and household income.<\/p>\n

\u201cAffordability will remain a huge issue in many parts of the country\u2014and a major obstacle hindering recovery,\u201d Hogue concluded.<\/p>\n

Visited 503 times, 503 visit(s) today<\/p>\n

affordability housing affordability rbc rbc affodability index rbc economics report Robert Hogue<\/p>\n

Last modified: July 3, 2025<\/p>\n<\/p><\/div>\n

Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

It hasn\u2019t been this affordable to own a home in Canada in three years, according to RBC Economics. Its latest national affordability measure dropped to 55.1% in the first quarter of 2025, down from 60.7% a year ago. The improvement was driven by interest rate cuts, small declines in home prices, and steady household income<\/p>\n","protected":false},"author":1,"featured_media":17680,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[216],"tags":[3769,726,873,944,1417,3791,203],"class_list":{"0":"post-17679","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-mortgage","8":"tag-affordable","9":"tag-canada","10":"tag-costs","11":"tag-fall","12":"tag-homeownership","13":"tag-level","14":"tag-years"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/17679","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17679"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/17679\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/17680"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17679"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17679"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17679"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}