Royal Bank of Canada's housing affordability measure takes a quarterly look at what percentage of median pre-tax household income is needed to pay the cost of a mortgage on an average-priced detached bungalow, plus property taxes and utilities. Lenders deem a house to be affordable if the associated costs account for no more than 32 per cent of the borrower's gross income. Here are affordability numbers from the first quarter of 2013.
Average Price in Q1 | Qualifying Gross Household Income ($) | RBC Housing Affordability Measure | Average Housing Measure Since '85 | |
Canada | $366,500 | $77,700 | 42.5% | 39.0% |
Vancouver | $786,300 | $147,300 | 82.3% | 59.8% |
Calgary | $451,800 | $89,500 | 38.7% | 39.1% |
Edmonton | $330,000 | $71,900 | 30.4% | 33.1% |
Toronto | $556,600 | $113,300 | 53.8% | 48.7% |
Ottawa | $389,800 | $88,400 | 39.1% | 36.8% |
Montreal | $294,500 | $63,900 | 40.1% | 36.8% |
Source: Royal Bank of Canada |