Bank Of Canada Quietly Updates Real Estate Affordability Data To The Worst In 13 Years
Posted by Teri-Lynn Jones onJANUARY 11, 2022
Canada’s central bank quietly updated its real estate affordability index. It wasn’t good news. The Housing Affordability Index (HAI) made a big jump in Q3 2021. Maintained by the Bank of Canada (BOC), the HAI shows the share of income required to service a mortgage on a home. Low rates are no longer helping affordability, but fueling prices that outpace wages. As a result, affordability has now reached the worst level since the Great Recession.
The Bank Of Canada Housing Affordability Index
The BoC Housing Affordability Index shows the share of income needed for housing costs. More specifically, the share of disposable income an average family would use. Housing costs are defined as mortgage payments and utilities.…
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