Quarterly house price to income ratio in Canada Q1 2012-Q3 2022
The house price ratio in Canada fluctuated between 2012 and 2022. The ratio measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. Canada's index score in the third quarter of 2022 amounted to 143.5, which means that house price growth has outpaced income growth by almost 50 percent since 2015.
Canadian home prices are falling
Canadian house prices rose steadily in recent years. This was also the case in British Columbia, which has consistently been the most expensive province for housing. This is likely due to the fact that Vancouver, Canada's most expensive city, is located there.
Canadian incomes are rising
Incomes in Canada have steadily risen since 2000 and show no signs of slowing down in the near future. This should improve housing affordability, as long as home price growth slows down.
Canadian home prices are falling
Canadian house prices rose steadily in recent years. This was also the case in British Columbia, which has consistently been the most expensive province for housing. This is likely due to the fact that Vancouver, Canada's most expensive city, is located there.
Canadian incomes are rising
Incomes in Canada have steadily risen since 2000 and show no signs of slowing down in the near future. This should improve housing affordability, as long as home price growth slows down.
