B.C. leads the way across the country with more homes being built. However, Vancouver still remains the most expensive place to buy one.
According to Canada Mortgage and Housing, starts of single and multiple family units increased by 56 percent in August compared to July.
But while ownership costs are easing in B.C., Vancouverites still spend a considerably larger percentage of their annual income - 63.4 percent - on housing compared to other Canadians, according to RBC.
Someone who earns $67,000 a year and can put 25 percent down on a $340,000 condo will end up spending 36.9 percent of their income on their home.
The average Calgarian can buy a detached two-storey home for that amount.
"Certainly there is a certain degree of sticker shock for people relocating here from other parts of the country," said Cameron Muir, chief economist for the B.C. Real Estate Association.
"You have to remember Vancouver's geography is constrained. Many other cities in Canada aren't constrained by the border, the ocean and the agricultural land reserve. It tends to put a premium on land prices in Vancouver."
One study put Vancouver fourth on the list of the world's most expensive places to live - behind Australia's Sunshine coast, Honolulu and Australia's Gold Coast.
RBC warns that the trend of increased affordability -- driven by low interest rates and falling home prices as a result of the recession -- could soon reverse as the real estate market recovers.
With a report from CTV British Columbia's Shannon Paterson
