With house prices and the cost of living both high in Canada, a new report on housing affordability has pinpointed exactly how much income Canadians will need to be able to afford a home by 2023.
Zoocasa has shared which Canadian cities are the cheapest for individual shoppers and how much you need to earn to be able to afford the purchase, and the numbers are pretty grim.
A new report from the real estate platform has identified the cheapest and most expensive cities in Canada for those looking to buy a single-income home.
Zoocasa then compared the income required to buy a home to the median income of residents between the ages of 25 and 64, and in many markets the gap between house prices and income is dramatic.
What salary do you need to buy a house in Canada?
Not surprisingly, Vancouver is the market with the highest income required to buy an average home, which was priced at $1,114,300 in December 2022.
Residents here would need to earn at least $173,250 a year to afford a home, assuming the buyer would pay a 20% down payment and get a 30-year mortgage with an interest rate of 5.14% .
However, as the Zoocasa report notes, the median income of Vancouver residents, at $56,400, is well below the required level.
Similarly, in Toronto, where residents would need to earn $168,150 to afford a $1,081,400 home, the median income is considerably lower at $62,000.
The prices of single-family homes, townhouses and condos are also prohibitive.
Other markets like Victoria, Hamilton-Burlington, Calgary, Ottawa, Montreal and Halifx behave quite similarly, where the income required to buy an average home ranges from $77,400 to $135,675, but the median income does not is only between $48,000 and $51. 6000 range.
The cheapest accommodation in Canada
On the other hand, the median income in some markets is more than enough to cover the cost of owning a home.
In Saint John, New Brunswick, where the median home price is $261,300, residents would need to earn at least $40,613 to afford to buy one.
In town, however, the median income is $48,000, which is more than enough to pay for a single-family home and a condo.
Similarly, residents of Regina earn a median income of $58,000, which is a lot considering the income required to buy a $311,500 home is $48,450.
According to Zoocasa, the five most affordable cities in Canada for potential buyers are:
- Regina, Saskatchewan
- Saint John, New Brunswick
- Edmonton, AB
- St. John’s, Newfoundland
- Winnipeg, Manitoba
When it comes to buying a home, your money goes a lot further in these cities.
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