Province
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OTTAWA — A new report says B.C. has the least affordable housing in the country, while Alberta‘s housing is the most affordable. Overall, though, housing costs are taking up a greater proportion of household income in all parts of the country and will continue to do so, according to the report by RBC which is being released today. The financial institution’s report was especially pessimistic about the outlook for affordability in Vancouver. Not only is the city’s housing the least affordable of any major Canadian city, it’s also the least affordable it has been in over half a decade. It now takes nearly one-half of the average family’s pre-tax income to cover the costs of owning a bungalow. The average price of a house in Greater Vancouver in October was $407,166, according to the report. (Royal LePage estimated the average price of a standard bungalow on the west side was $675,000 in the third quarter.) And it’s going to get worse, the report suggests. “Potential buyers will increasingly have to opt for more affordable housing options, such as smaller condos or even rentals in the downtown core,” says the report. “Other potential buyers will be forced to migrate to more affordable regions outside of the city where possible, and older affluent migrants from out-of-province will make up a greater share of potential buyers in the core.” In contrast, Toronto — where the average price was $324,278 (or $750,000 for a two-storey in the popular Moore Park area) — will see declines in demand and prices for housing aimed at first-time buyers, such as small condos. However, the report stressed that “this does not mean the entire Toronto condo market will collapse.” © The Vancouver Province 2004 |
