Canada had an all-over-the-place 2022 real estate market, with many markets hitting their all-time peak in the first half of the year before steady declines as interest rates rose. Many of those markets still ended the year with higher prices compared to the beginning of the year, but how did those price increases compare to the income of the average buyer?
Zoocasa analyzed 30 different real estate markets in the Greater Toronto Area (GTA) to learn how median home prices and gains compared to the after-tax incomes earned in each and how home values have increased relative to household earnings.
Prices in 20 GTA Markets Increased by More than Half of Earnings
Home prices in the majority of markets across the GTA increased by 50% and 75% of the median income in each. Since interest rates hit record breaking lows in the first few months of the year, it led to record price highs each month until the Bank of Canada began increasing rates, which put downward pressure on prices.
Two markets actually saw increases of over 100% of the median income – Scugog and Richmond Hill. The median income for Scugog is currently $92,000, while home prices increased by $133,063, a huge jump of 144.63% of the median income. Richmond Hill’s price grew by $91,706, 103.04% of the median income of $89,000.
Prices Declined in Only Three GTA Markets
There were only three markets where household income outpaced home prices – Caledon, King, and Uxbridge. These were the only cities included in our analysis where prices actually declined year-over-year, contributing to the change in comparison to the income. Uxbridge had the greatest decline, with home prices dropping by $63,115, 63.75% of the median income in the area.
The region with the largest price increase as a percentage of the median income was Peel, as home prices increased by 91.58% of the income of $94,000. The smallest increase came in the Halton region, where the home price of $1,155,958 increased by 56.17% of the median income of $103,000.
Prices in Toronto rose by nearly 90% of the median income of homeowners in the city, but that can be broken down a little further. Central Toronto actually had the smallest price increase in comparison to the income, with an increase of 71.35%. Meanwhile, Toronto East’s home price increased by nearly 100% of the median income of $74,000, increasing by $73,571. The west side had an 84.25% increase in comparison to the median income of $52,796.
If you’re looking to purchase a home in the GTA, we’re here to help! Call us today and we can help you find your dream home.
