saw a “considerable deterioration” in Canada in the third quarter of 2023, according to a new report from theThe bank pointed to rising interest rates as part of the cause. That, combined with a rebound in home prices, has left the ability to afford a home a more difficult prospect, according to the report.
Dahms says that is, in turn, putting pressure on the rental market, which then “overflows” into the housing market and the demand for housing, further pushing up prices. Eitan Pinsky, owner of Pinsky Mortgages in B.C., said the report was not a surprise because affordability has been extremely challenging for people, especially in the bigger cities.
Part of this is due to the cost of homes in these locations. The report notes the median price in Calgary for a non-condo is approximately $630,000, with an annual household income of $154,000 needed, while the median cost in Vancouver is at $1.6 million, with an annual household income of almost $349,000 needed.
And first-time homebuyers may be the biggest demographic impacted, with the report showing they will face a particularly challenging future. “Your ability to save money is the most important thing when you’re going to be buying a property,” Pinsky said.It’s hard to determine what would be the solution to the ongoing housing affordability crisis Canadians are facing. The ongoing increase in home costs has become a dominant issue plaguing governments at all levels.