Whether you live north or south of the Canada-United States border, housing affordability is deteriorating. American and Canadian homeowners have both had to grapple with rising inflation, inventory shortages, and increased borrowing costs.
But despite these similarities, one economic difference stands out: income. On average, American homeowners earn more than their Canadian counterparts, giving them a relative advantage in terms of housing affordability.
As a result, far fewer Canadian cities meet the traditional affordability benchmark where housing costs are less than 30% of household income. In just 20.7% of the Canadian cities we analyzed, average monthly mortgage payments were less than 30% of household income, compared to 45.5% of American cities.
To understand how affordability differs across the border, Zoocasa analyzed average monthly mortgage payments in 33 U.S. cities and 29 Canadian cities. We then compared those payments to each city’s median household income to calculate the percentage of income going toward housing costs
All figures are in USD. Canadian dollar figures were converted to US dollars at an exchange rate of 1 CAD = 0.72366 USD, according to Forbes Advisor.
Canada’s Priciest Cities Outpace the Most Expensive in America
On average, Canadian mortgage payments account for 46% of household income, while in the U.S., the average is 34.2%. The evidence is clear: Canadians are stretching their paychecks further than Americans.
This disparity is further highlighted by the fact that the four most unaffordable cities in North America are all Canadian: Vancouver, Toronto, Victoria, and Abbotsford. In these cities, a median-income household’s budget is so over-extended that it would be nearly impossible to afford to buy a home without outside help.
In Vancouver, the median household income of $57,527 falls well short of covering the average monthly mortgage payment of $5,423. That means a typical household would need to spend more than 100% of its annual income on mortgage costs alone, clearly unmanageable.
In contrast, San Francisco, the least affordable U.S. city, requires residents to spend 65% of their income on housing. While still well above affordability guidelines, there is a stark difference between the two West Coast cities. is stark.
Toronto homeowners are not much better off. With a median household income of $53,546 and a median home price of just over $1 million, homeowners need to spend a whopping 83.5% of their income on mortgage costs.
This puts Toronto on par with San Diego, where the median single-family home price is similarly just above $1 million, though the median income is $12,000 higher. So, while Toronto homeowners spend 83.5% of their household income on mortgage payments, San Diego homeowners only spend 62.9%.
New York City or Southwestern Ontario: Who’s Paying More?
With $730,000, you could buy a home in New York City, one of the world’s most famous cities. Or, for slightly less, you could buy a single-family home in Guelph, ON, a suburban city approximately an hour and a half away from Toronto.
While Guelph’s average monthly mortgage payment of $2,582 is lower than New York’s $3,833, median-income earners will have a harder time covering their bills in Guelph than in New York. Guelph homeowners need to dedicate 51% of their $60,000 income towards housing, while New Yorkers only require 48.3% of their $95,220 income to cover costs.
With a budget of $500,000, buying a single-family home in Ontario becomes more challenging, but there are options. London and Kingston both have median single-family home prices around $460,000, but median-income households will need to overextend their budgets to cover housing costs.
In cities across Canada, it’s easy to find an American counterpart with a similar home price but far greater affordability. In most cases, higher American incomes are the key contributing factor.
The Grass Might Be Greener on the Other Side: How Border Cities Compare
Buffalo, NY, and Niagara Falls, ON, sit on opposite sides of the Niagara River and share a common draw to tourism. But when it comes to housing affordability, the grass is greener on the American side.
In Buffalo, homeowners only need to spend 22.2% of their income on mortgage payments, well below the affordability threshold. Across the river, Niagara Region homeowners need to spend nearly double that, at 40.4%. While income plays a role, with Buffalo homeowners earning $69,861 and Niagara Region homeowners earning $51,376, housing prices are also a factor.
Homes in the Niagara Region cost $466,431, but in Buffalo, it’s nearly half that at just $245,900, further boosting affordability.
A similar scenario plays out when comparing another pair of border cities. Detroit and Windsor both have some of the lowest median home prices in their respective regions, but this still puts Windsor’s price more than $100,000 higher than Detroit’s.
Furthermore, median-income households in Windsor need to spend 32.9% of their income on mortgage payments, while median-income households in Detroit spend just 22%.
Where Canadian Homeownership is Still Within Reach
Of the ten most affordable cities, three Canadian cities stand out: Regina, St. John’s, and Saint John. In each, median-income households spend less than 25% of their income on mortgage costs, making homeownership more attainable.
Saint John also has the lowest average monthly mortgage payment across all 62 cities at just $947. Notably, this is despite having the lowest median income on our list ($47,039), showing that affordability isn’t solely tied to income. In Saint John’s case, a low home price helps offset lower earnings.
On the other hand, cities with higher incomes often come with higher home prices, widening the affordability gap. In Oakville and Brampton, median household incomes are relatively high at $78,149 and $70,919, respectively, yet homeowners still need to spend nearly 50% of their income on mortgage payments.
That’s why, among the six Canadian cities where median-income households spend less than 30% of their income on mortgage costs, only Edmonton has a median income above $60,000. Edmonton is a rare case where relatively high incomes and lower home prices align, making homeownership more attainable for the median-income household.
Planning to enter one of these markets this summer? It’s important to speak with a local realtor who is familiar with your local real estate market. Give us a call today to discuss your home-buying plans.
Methodology:
Median household incomes for U.S. cities were sourced from the U.S. Census Bureau, while median after-tax household incomes for Canadian cities were sourced from Statistics Canada.
Median single-family home prices for the U.S. cities were sourced from the National Association of Realtors for Q1 2025.
Median single-family home prices for Canadian cities were sourced from the Canadian Real Estate Association (CREA) and individual real estate boards. In the case of Vancouver, the benchmark single-family home price was used.
Mortgage payments for both countries were calculated assuming a 20% down payment and a 30-year mortgage at a fixed rate of 6.86% (U.S.) or 3.79% (Canada). Fixed mortgage rates were based on the most current averages from FreddieMac and Ratehub.ca
All figures are in USD. Canadian dollar figures were converted to US dollars at an exchange rate of 1 CAD = 0.72366 USD, according to Forbes Advisor.
