High borrowing costs, limited inventory, and a cost of living crisis have recently made it difficult for homebuyers to enter the market. For solo buyers or those dependent on a single income, these obstacles are especially large and can reduce a buyer’s purchasing power. But with home prices staying relatively flat and some fixed rates now coming down, there are quite a few markets in the condo segment where single buyers stand a chance at homeownership.
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In January 2024, the national benchmark price for a condo apartment was $526,500, over $200,000 lower than the January 2024 benchmark price of a single-family home according to the Canadian Real Estate Association. In more expensive markets like Greater Toronto and Greater Vancouver, the price difference between a condo and a single-family home can be even larger. This positions condo apartments as the most affordable property type and is an excellent option for first-time home buyers or single-income buyers.
To find out which cities are the best for buying a condo with a single income, Zoocasa analyzed benchmark price data for condo apartments in 22 markets and calculated how many months it would take a homebuyer earning the after-tax average income to save for the minimum down payment. For the purpose of this report, it was assumed that the homebuyer was contributing 100% of their annual income to saving up for the minimum down payment. After-tax average incomes for persons living alone were sourced from Statistics Canada Income Explorer, 2021 Census, and benchmark apartment prices were sourced from the Canadian Real Estate Association.
Solo Condo Buyers Can Save for a Down Payment in Under 8 Months in Most Cities
Out of 22 cities, Edmonton is the most affordable for buying a condo on a single income. It would take an average income earner just 2.1 months to save up for the required down payment of $9,005. Not only do Edmonton single buyers benefit from low condo prices, but the city also has one of the highest average incomes of the cities we analyzed at $50,680. With the highest average income on our list, Calgary single-income buyers can also save up for the required down payment in a short time. It would take an average-income earner 3.5 months to save up the $16,525 needed for the down payment in Calgary.
Even in Prairie cities with average incomes much lower than in Calgary, an average-income earner needs only a couple of months to save up for the required down payment on a condo. With an average yearly salary of $46,240, a single homebuyer in Saskatoon can save enough in just 2.9 months to be able to pay the $11,055 necessary for the minimum down payment, and in Winnipeg, where the average after-tax income for persons living alone is $42,880, it would take 3.2 months to save up for the required minimum down payment of $11,380.
In Ontario, London & St. Thomas is the most affordable place for solo dwellers to purchase a condo. A single buyer earning $43,560 would only need to save for 4.8 months before being able to afford the $17,570 minimum down payment. Ottawa is the next most affordable place in Ontario for solo condo buyers, thanks to a relatively high average after-tax income of $50,480 and an affordable benchmark condo price of $418,500.
A Longer Path to Condo Homeownership in Toronto and Vancouver
Solo dwellers in Vancouver have the hardest time saving up for a down payment on a single income. It would take the average income-earner who lives alone 12.2 months to be able to save up for the required down payment of $50,190. Persons living alone in Vancouver earn an average after-tax income of $49,440, which is less than the minimum down payment and makes Vancouver the only city on our list where solo buyers have to save for more than a year.
In Toronto, where the average after-tax income of persons living alone is higher than Vancouver and the benchmark condo price is lower, a solo buyer would need to save for 10 months to be able to afford the $43,290 minimum down payment. Despite having a benchmark condo price of over $100,000 lower than Toronto, Hamilton-Burlington condos still require solo buyers to save their after-tax income for more than 7 months to be able to afford the minimum down payment of $29,550.
If you’re a single buyer looking to get into the real estate market, we can help! Give us a call today to speak with a qualified agent in your area.
