May 2022

National Bank released its quarterly Housing Affordability Monitor for Canada in May. The data, which focuses on the first quarter of 2022, shows a particularly significant deterioration in housing affordability across the country. Here are the highlights:

  • Housing affordability experienced its fifth consecutive quarter of deterioration in the first quarter of 2022. The mortgage payment on a median property proportional to income (MPPI) increased by 4.9 percentage points during the period across Canada, its largest increase in 27 years. The MPPI indicator provides a snapshot of the importance of mortgage payments on household finances.

  • ll ten Canadian metropolitan markets analyzed were affected by deteriorating affordability. The Ottawa-Gatineau, Montreal, and Quebec City markets, however, were relatively less affected than the other Canadian metropolitan areas, with MPPI changes of 3.1, 2.7, and 1.6, respectively.

  • Condominiums were comparatively less affected by this deterioration in affordability, with a gain of 2.7 percentage points versus 6.3 for the other residential segments.

  • The statistics detailed in the report show that only the Quebec City and Winnipeg metropolitan areas currently have prices that allow the local median wage earner to purchase a median home while spending no more than 32 per cent of pre-tax income on it.

To read the full report, click here.

The French version of this report is available here.

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