Housing affordability deteriorated to its worst level in over 30 years, according to data from the Bank of Canada.
The BoC released the first-quarter results of its Housing Affordability Index (HAI) this past week, which rose sharply compared to the previous quarter.
The data shows a household must now devote 42.8% of its disposable income to housing-related expenses. That’s up from 39.7% in Q4 2021 and 34.7% a year earlier.
The Index measures the share of income needed for housing costs such as mortgage payments and utilities, but excludes property taxes.
The release follows similar findings from National Bank of Canada’s first-quarter Housing Affordability Monitor. That measure, which strictly tracks mortgage carrying costs, saw its fifth consecutive deterioration.
“For the first time since 1994, it would take more than 50% of…