A new study from Royal Bank of Canada says it has never been so unaffordable to own a single detached home in Vancouver, and Toronto housing is seen as becoming rapidly unaffordable.

“The significant rise in homeownership costs in Vancouver and Toronto had a dominant influence on Canada-wide affordability measures in the fourth quarter of 2015,” said Craig Wright, chief economist with RBC, in a statement. “While prices continue to escalate in Vancouver and Toronto markets, there are few signs that housing affordability is problematic elsewhere in Canada. Homes in other markets remain affordable with the situation either improving or remaining fairly stable.”

RBC emphasized that in Vancouver and Toronto condominium apartments are still “within reach” for many households.

The bank produces an affordability measure designed to capture the proportion of pre-tax household income needed to service the cost of owning a specific category of home at current market value. The higher the percentage, the more affordability has been eroded. Home ownership costs included in the measure are such expenses as mortgage payments, utilities and property taxes.

Across all types of housing in Canada, affordability was up 0.6 percentage points in fourth quarter, rising to 46.7% — the highest level in more than five years. For single detached homes it rose 0.6 percentage points to 51.3%.

In the Vancouver area, using the RBC measure, 109% of pre-tax household income for the median income family was needed to buy a standard detached home.

“This implies that only a select few wealthy households can afford to own such properties at market prices. Condo apartments, on the other hand, remain comparatively more affordable — with a measure of 44.1 — and, therefore, cater to a broader base of local (buyers),” the report says.

Home Ownership Still Affordable — Just Not for Detached Homes in Vancouver or Toronto by Garry Marr | Financial Post