Housing is now more unaffordable in Toronto than ever before recorded in history.
According to the Royal Bank of Canada, Canada’s housing affordability is worse today than at any time since 1990. Housing affordability has now declined for eight straight quarters. The affordability crisis has slammed Toronto especially hard, with housing now less affordable in that city than at any time ever previously recorded. Efforts by the Ontario government to cool off the housing market have not shown immediate results when it comes to housing prices in the province.
Despite Toronto’s troubles, Vancouver remains the most unaffordable place to buy a home in Canada, with two quarters of improvement coming to an end as affordability declined in Q2. Vancouver housing prices have been dramatically driven up by foreign home buyers, including many millionaires from China. In many cases, foreigners purchase numerous homes and don’t even live in them, driving up prices for Canadian citizens. While a foreign home buyers tax was imposed, it was far below the high level that would have been needed to massively curb the surge of foreign buyers, and as a result, housing is tougher and tougher to afford for Canadians in the area.