One report out today shows more million dollar homes in the Vancouver area, but another report splashes more cold water on the market.
RBC economics says affordibility in Canada’s housing market continued to slip in the third quarter, according to its Housing Trends and Affordability Report.
The report shows Metro Vancouver did not record the most significant erosion in affordability in our country, for the first time in two years.
That dubious title went to the Greater Toronto Area, where RBC’s aggregate measure jumped by 3.0 percentage points to 63.7 per cent.
Even with improving affordability in the Vancouver area, steep ownership costs continue.
The report says the Vancouver area showed the steepest ownership costs as a share of household income at 92.0 per cent (for the all-housing category aggregate).
Meantime, SFU Researcher Andy Yan’s annual ‘million dollar line’ report is out this morning.
Yan’s research shows the percentage of Metro Vancouver homes valued over $1 million rose from 28 per cent to 43 per cent this year.
Yan says million dollar homes are spreading out to the suburbs.
“74% of single family homes in Burnaby are worth over $1 million dollars, and in North Vancouver 78% of single family homes are worth over $1 million.”
Yan says underlying this study is that suburban sprawl isn’t going to fix affordability issues.
“Sprawl, or driving out until you qualify, has its pitfalls as transportation costs are really one of the icebergs to affordability.”
He says factored into affordability is transportation costs which are bringing more of homes to the million dollar mark.
While only 0.3 per cent of homes in Langley are worth over $1million dollars, but factor in transportation costs and nearly 3/4’s of homes hit the million dollar mark.