Quarterly house price to income ratio in Canada 2015-2019
In the third quarter of 2019, the house price to income ratio in Canada amounted to 119 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.
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, one of the world’s most expensive cities for homes, 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, one of the world’s most expensive cities for homes, 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.
