Buying a home in Canada’s topsy-turvy real estate market over the last couple of years has proven a challenge for many buyers. According to the Canadian Real Estate Association (CREA), the current national average home price was $662,437 in February 2023, in spite of home prices declining since the peaks of early last year. As interest rates have climbed and housing affordability and mortgage prices have changed in the last 10 months, many buyers have been sitting on the sidelines to see how things pan out.
So what kind of income would you need to be able to afford a home in Canada right now? We took a look at average home prices across 20 different cities and compared the median income in each to the required income to afford the average home.
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12 of the 20 Markets are Considered Affordable for a Median Income Household
Of the 20 markets we analyzed, buyers with a median household income could afford to buy in just over half of them. Ontario is the most expensive province to buy in, but there are a few options for those earning in and around the median income. Ottawa’s average home price of $613,000 requires an income of $94,763 whereas the median income in the city is $121,790. London-St. Thomas is also on the comparatively affordable side of Ontario as the median income of $94,070 is above the required income of $90,225 to buy a home at the average price of $583,500. Toronto and Vancouver are the most expensive markets, with average home prices of $1,091,300 and $1,123,400 respectively. The two have median incomes of $96,700 and $98,640 and require an income of $168,712 and $173,663.
Look to the Prairies and the East Coast for Affordability
The Prairies and the East Coast are, unsurprisingly, the most affordable places to buy a home. The median income in Regina is $106,340, well above the required income of $47,963 to buy a house at the average price of $310,200. Saskatoon also sees greater affordability, where the average home price of $372,400 requires an income of $57,563 to buy, with a median income around $102,830. On the East Coast, Saint John’s average home price of $268,400 requires an income of $41,513, with the median income more than double that at $89,750. In Newfoundland and Labrador, the median income of $85,800 can comfortably afford the average home price of $276,700, where an income of only $42,788 is required.
Want to discuss your options? Give us a call today to learn what properties are available in your city and budget.
