Quarterly house price to income ratio in Canada 2015-2020
In the fourth quarter of 2020, the house price to income ratio in Canada amounted to around 123.9 percent. This ratio was calculated by dividing nominal house prices by nominal disposable income per head. The index was based on 2015 prices, which means that the index equaled 100 in that year. The significant drop in the first half of 2020 was likely an effect of the COVID-19 pandemic.
Canadian home prices are falling
Canadian house prices steadily rose until 2017, but have been falling since and are set to stabilize in the near future. This is 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, the 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 prices don’t outpace wage growth.
Canadian home prices are falling
Canadian house prices steadily rose until 2017, but have been falling since and are set to stabilize in the near future. This is 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, the 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 prices don’t outpace wage growth.
