METRO VANCOUVER (NEWS 1130) – “Calling it a crisis is no exaggeration,” according to economists at the Royal Bank, looking at the costs of home ownership in Metro Vancouver.

It says mortgage payments, property taxes and utilities take up more than 88 per cent of typical household income, the latest in a series of record highs for any Canadian market.

The cost of home ownership is up more than eight points over the past year. The bank says single-detached homes are “for the rich only,” requiring nearly 120 per cent of household income to cover the costs.

It even says “settling for a condo also increasingly looks like a luxury for many.”

The bank’s economists conclude that rising interest rates mean “the situation is poised to deteriorate further,” meaning “rental housing will become the only viable option for a growing proportion of households.”

After Vancouver, the highest cost of carrying a home is in Toronto at 76 per cent while the nationwide average is 54 per cent.

RBC also says Victoria has joined what it calls “the unaffordable club,” with costs that eat up 65 per cent of household income. The B.C. capital had the nation’s biggest increase in home ownership costs at 2.4 per cent.

While rising prices were the main reason affordability fell between 2015 and 2017, the bank says that since the middle of last year “rising interest rates have been the main factor squeezing affordability.”

RBC adds, “No wonder the current generation of local buyers feels overwhelmed — no other generation has faced as much affordability pressure in this country.”