Canada Has a Housing Affordability Crisis: RBC

The video discusses the unaffordability of housing in Canada, featuring insights from Robert Hoge, an economist at RBC. It highlights the significant percentage of income required for home ownership, especially in regions like Vancouver and Toronto. The discussion covers the impact of rising interest rates and property values on affordability, with predictions of a potential market correction. Hoge anticipates a 14% drop in benchmark prices, with affordability remaining stretched into 2024. The video also explores regional variations in affordability and the shift towards more affordable housing options.

What has been a major factor contributing to the recent spike in housing unaffordability in Canada?

• Decrease in property values

• Government subsidies

• Reduction in housing demand

• Increase in interest rates

In which Canadian city does the average home ownership cost consume 90% of income?

• Vancouver

• Toronto

• Calgary

• Montreal

Which regions in Canada are considered to have relatively affordable housing markets?

• Prairies and Atlantic Canada

• Northern Territories

• Ontario and Quebec

• British Columbia and Alberta

What is expected to happen to housing prices in Canada over the next year?

• Prices will continue to rise

• Prices will fall by over 50%

• Prices will fall by approximately 14%

• Prices will remain stable

When is some relief in housing affordability expected to begin?

• Immediately

• In the next few months

• By early next year

• In five years

What is the predicted long-term outlook for housing affordability in Canada?

• Affordability will improve significantly

• Affordability will remain stretched

• Affordability will not change

• Affordability will worsen drastically

How does the current housing downturn compare to previous ones in Canada?

• It is not significant at all

• It is the most significant

• It is about the same

• It is less significant