3 July 2019

RBC’s national aggregate affordability measure, based on the share of a household income, fell by 0.3% to 51.4% in Q1.

In RBC’s opinion, as interest rate hikes are not expected any time soon, Canada’s overall housing affordability may see a slight improvement in the nearest future.

According to RBC, as Toronto’s real estate market keeps recovering, any improvement may be gradual.

The income level for home ownership is still too high in Toronto. RBC’s aggregate measure here reached 66% in Q1, and as prices are moving towards modest increase the bank doesn’t predict significant improvements any time soon.