Buying a home is a challenging undertaking at the best of times, but is more difficult when you’re doing it on your own. Having a dual income can help, but it’s still possible to buy a home on your own. We crunched the numbers to see which cities in Canada would be the most affordable for single buyers to purchase a home in, and which property types would be the best option.
The average home prices were sourced from the Canadian Real Estate Association (CREA) to determine which markets were the most affordable. To determine the minimum income required to qualify for a mortgage on the average home, we assumed the buyer would make a 20% down payment and receive a mortgage with the current average interest rate of 5.14% amortized over 30 years. Those findings were then compared to median income data of “persons living alone who earned employment income” as reported by Statistics Canada in its latest available census data from 2021.
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The East Coast and the Prairies are the Most Affordable for Single Income Buyers
Home prices in many cities have come down from the peaks of early 2022, with some of the major cities across Canada flattening in the later months of last year. While homes are still expensive, single buyers may have more luck in their home search now than they would have this time last year.
Five of the major cities we covered have home prices affordable enough for a household making the median income. Edmonton, Winnipeg, Regina, St John’s, and Saint John have average home prices lower than the average income. Regina is the most affordable of these, with an average income of $58,000 being more than enough to be able to afford the average home price of $311,500.
Top 5 most affordable cities:
1. Regina, Saskatchewan
- Average home price: $311,500
- Income required: $48,450
- Actual median income: $58,000
- Income surplus: $9,550
2. Saint John, New Brunswick
- Average home price: $261,300
- Income required: $40,613
- Actual median income: $48,000
- Income surplus: $7,387
3. Edmonton, Alberta
- Average home price: $366,600
- Income required: $57,000
- Actual median income: $59,600
- Income surplus: $2,600
4. St. John’s, Newfoundland
- Average home price: $316,800
- Income required: $49,275
- Actual median income: $50,400
- Income surplus: $1,125
5. Winnipeg, Manitoba
- Average home price: $323,400
- Income required: $50,288
- Actual median income: $50,400
- Income surplus: $112
British Columbia and Ontario, Canada’s two most expensive provinces, may be out of reach for the average single-income buyer. Vancouver’s average home price requires a total income of $173,250, with the average income of single buyers being well below that at just $56,400. Toronto’s required income is $168,150, slightly lower than Vancouver’s, but still well clear of the average income of $62,000.
Detached Homes are a No-Go
During our research, we broke down different property types to see which would be the most affordable for a single-income buyer and detached homes barely made the list. The only city where the average cost of a detached home was affordable for a single-income buyer earning the median income was Saint John, where the average income of $48,000 could afford the average detached home at $261,000. Apartments are the most affordable; seven of the cities have average apartment prices within the reach of single income buyers. Calgary’s apartment price is $286,200, with a required income below the average. Townhouses, however, are not far behind, with five affordable cities, Edmonton has the most affordable townhouses at $229,300, as well as apartments at $176,400, well within the affordability range of the average income.
If you are a single buyer looking to purchase a home, you can speak to one of our expert agents who will help guide you through the process and find the best option for what you can buy. You can also sign up for our newsletter to keep up to date on everything real estate.
