Toronto's housing affordability just hit an all time low

It’s been a grim week in Toronto real estate news, and it keeps getting grimmer.

The Royal Bank has just released a report that puts housing affordability in Toronto at the lowest point in its history. Meanwhile, the rate for Canada overall has worsened for the eighth straight quarter.

The RBC Housing Affordability Report measures what percentage of pre-tax median household income it would take to sustain the average home, including mortgages, property taxes, utilities, and other factors.

Despite the staggering 75.4 percent for Toronto, it wasn’t the worst offender. Vancouver held onto first place at a whopping 80.7 percent, leaving Toronto in second. The national average sits at 46.7 percent, the worst rate since 1990.

Outside of Vancouver and Toronto, two cities notorious for their incredibly high costs for a home, the country was mostly stable. The Prairies, Quebec, and Atlantic Canada saw very few noticeable changes.

The news comes despite the Province of Ontario’s attempts to control prices with the Fair Housing Plan. The new policy is meant to slow the rising rate of living costs in areas like Toronto, but is still too fresh to see long term changes.

According to the report, rising interest rates will also continue to weigh down on Canadians looking to buy a home.

So if you’re looking to buy a home soon, be prepared to spend 75.4 percent of your income. If that sounds like too much, you’re always free to wait until the housing bubble bursts.