Affordability is a key topic of conversation in Canada with high home prices and ever-increasing mortgage rates. While buying a detached home in most of Canada’s major markets is a tough ask for homebuyers, those buying alone may find themselves struggling to even get into the condo market.
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But how tough is it for those with a single income? To find out, we analyzed data from 18 major Canadian markets to learn how much it would cost to afford a home in each and whether those earning the median income in their city could afford to do so.
Affordability Tightening as Rates and Home Prices Rise
When we last did this report, there were a few pockets of affordability on Canada’s east coast and in the Prairies where single-income buyers would be able to afford a home at the average price. Since then, interest rates have increased multiple times, and home prices have steadily risen in the last six months in many of these markets, despite a slight dip on a national level last month. As a result, all of those cities that were previously affordable to buy in with a single income may now be out of reach.
Even Canada’s most affordable cities are likely out of the range for single-income buyers. The most affordable city we analyzed, Saint John, has a benchmark price of $293,800, meaning the required income is $63,560 while the median income is just $48,000. Regina as the second most affordable requires an income of $69,038 for a home at the benchmark price of $319,200, however, the median income is only $58,000.
There are Still Some Affordable Options in Condo Markets
Fortunately, all hope is not lost. The condo market still has viable options for those with their hearts set on being a homeowner. Single-income earners can look to Canada’s east coast and the Prairies with Saint John, Regina, St. John’s, Saskatoon and Edmonton having average condo prices that are affordable for those earning the median income. The benchmark price of a condo in Saint John is $212,500, requiring an income of $45,975, slightly below what a median income earner in the city may be able to afford.
Similarly, in Edmonton, where condos are most affordable, a single-income buyer would need to earn $39,075 to buy one, nearly $11,000 less than the median income. It’s important to take into account that saving up more on a down payment will improve affordability. In Winnipeg, if a single-income buyer puts 20% down on a property as opposed to the minimum required of 5%, they would only need to earn $39,525 to afford a condo at the benchmark price.
For those looking for a townhouse, Regina offers the best affordability for single-income buyers. A townhouse costs an average of $236,800, requiring an income of $51,225, below the median in the city of $58,000.
Whether you’re buying single or with someone else, our expert agents are ready to help you navigate your local real estate market to help you find the perfect home.
