In the final quarter of 2018, Canadian housing affordability worsened for a 14th consecutive quarter, found economic research from the National Bank Housing Affordability Monitor.
Using data from the Teranet-National Bank House Price Index, National Bank Deputy Chief Economist Matthieu Arseneau and Economist Kyle Dahms released a quarterly report on January 24, 2019 analyzing the final three months of 2018.
And they found that house prices are getting less affordable in many markets.
The Housing Affordability Monitor featured a representative home for each of the 10 metropolitan markets in the House Price Index, including the representative price for the condo market and for the non-condo market, and the average household income needed for each.
Here’s what they found for October, November, December of 2018:
1. Toronto Housing Market
Non-Condo
Price of the representative home in the metropolitan market: $902,916
Household annual income needed to afford the representative home: $165,755
Condo
Price of the representative condo in the metropolitan market: $536,082
Household annual income needed to afford the representative condo: $98,413
2. Montreal Housing Market
Non-Condo
Price of the representative home in the metropolitan market: $369,234
Household annual income needed to afford the representative home: $67,783
Condo
Price of the representative condo in the metropolitan market: $276,889
Household annual income needed to afford the representative condo: $50,831
3. Vancouver Housing Market
Non-Condo
Price of the representative home in the metropolitan market: $1,318,768
Household annual income needed to afford the representative home: $242,096
Condo
Price of the representative condo in the metropolitan market: $638,842
Household annual income needed to afford the representative condo: $117,277
4. Calgary Housing Market
Non-Condo
Price of the representative home in the metropolitan market: $494,689
Household annual income needed to afford the representative home: $90,814
Condo
Price of the representative condo in the metropolitan market: $266,107
Household annual income needed to afford the representative condo: $48,851
5. Edmonton Housing Market
Non-Condo
Price of the representative home in the metropolitan market: $422,508
Household annual income needed to afford the representative home: $77,563
Condo
Price of the representative condo in the metropolitan market: $231,117
Household annual income needed to afford the representative condo: $42,428
6. Ottawa-Gatineau Housing Market
Non-Condo
Price of the representative home in the metropolitan market: $428,595
Household annual income needed to afford the representative home: $78,680
Condo
Price of the representative condo in the metropolitan market: $261,454
Household annual income needed to afford the representative condo: $47,997
7. Quebec City Housing Market
Non-Condo
Price of the representative home in the metropolitan market: $286,491
Household annual income needed to afford the representative home: $52,593
Condo
Price of the representative condo in the metropolitan market: $211,768
Household annual income needed to afford the representative condo: $38,876
8. Winnipeg Housing Market
Non-Condo
Price of the representative home in the metropolitan market: $321,259
Household annual income needed to afford the representative home: 58,976
Condo
Price of the representative condo in the metropolitan market: $223,614
Household annual income needed to afford the representative condo: $41,050
9. Hamilton Housing Market
Non-Condo
Price of the representative home in the metropolitan market: $598,274
Household annual income needed to afford the representative home: $109,829
Condo
Price of the representative condo in the metropolitan market: $445,629
Household annual income needed to afford the representative condo: $81,807
10. Victoria Housing Market
Non-Condo
Price of the representative home in the metropolitan market: $850,469
Household annual income needed to afford the representative home: $156,127
Condo
Price of the representative condo in the metropolitan market: $485,937
Household annual income needed to afford the representative condo: $89,207
In some markets, the quarterly report found that the gap between condo and non-condo affordability is shrinking. The worst deteriorations in affordability in Q4 were in Victoria, Toronto, and Vancouver. The only markets showing an improvement were Calgary and Edmonton. Countrywide, affordability worsened.
View the full 2018 Q4 report from the National Bank here: https://housepriceindex.ca/wp-content/uploads/2019/02/NBFM-Housing-Affordability-Monitor-Q4_2018-Eng.pdf.
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