RBC’s recent report on affordable houses across Canada, shines a bright light on Calgary. While most other Canadian cities are close to historical norms for affordability, Calgary is ‘better-than-usual.’
Given the headlines of previous years, Calgary’s affordability may (or may not) come as a surprise to home buyers. Others may be wary of Calgary’s current economic climate. But, all that may be behind us, as Alberta’s economy continues to show signs of recovery.
In the report, RBC measures affordability as the percentage of pre-tax household income required to cover mortgage payments, property taxes and utilities, based on the average market prices for different types of homes, including detached houses and condos.
Canada’s affordability is calculated at 44.2 per cent. Calgary historically has averaged 40.3 percent, but currently stands at 33.8 percent. That’s definitely a good sign for anyone searching today to buy a house in Calgary.