Canada's housing market has never been more unaffordable: RBC's Hogue

Buying a home in the Canadian market has never been so unaffordable, as surging interest rates continue to drive ownership costs to record-high levels, according to Robert Hogue, assistant chief economist at RBC Economics.

“The Bank of Canada’s rate hiking campaign since March has added hundreds of dollars to mortgage payments that come with a home purchase,” Hogue said in a report to clients Thursday.

“This, along with the jump in property values during the pandemic have made it more difficult than ever to become a homeowner in Canada.”

Hogue added that the “impact of higher mortgage rates has yet to fully run its course.”

“We expect increases to date, as well as further upcoming Bank of Canada hikes will intensify upward pressure on ownership costs over the second half of this year.”

RBC’S national aggregate affordability measure hit a record-high for housing ownership costs as a percentage of household income.