Bank Raises Red Flag Over Housing Affordability

Bank Raises Red Flag Over Housing Affordability
RBC economist Robert Hogue is raising a "red flag" about housing affordability in Vancouver.The bank's quarterly report on housing trends and affordability, released Monday, said Vancouver is one of a handful of Canadian markets where the share of household income taken up by home ownership costs "is at worrisome levels." RBC said the proportion of median pre-tax household income required to service the cost of a mortgage on an existing housing unit exceeds 70 per cent for both two-storey homes and detached bungalows. A standard condo consumes about 43 per cent of income, according to RBC.