The first quarter marked the fifth consecutive deterioration in housing affordability, and the worst drop yet, according to National Bank of Canada.
“Over the last 12 months, the worsening in affordability was the nastiest in 40 years,” NBC economists noted in the bank’s quarterly Housing Affordability Monitor.
The report tracks housing affordability in 10 major census metro areas by measuring the average down payment amount required for an average purchase and the monthly mortgage payment.
“For the first time since 1994, it would take more than 50% of income for a representative household to service the mortgage on a representative home in Canada’s main urban centres,” the report said. “The blame can be retraced in equal fashion to surging home prices and an increase in the mortgage interest rate in Q1.”
NBC noted that…
