What You’ll Need to Earn to Afford a Home in These GTA Cities [INFOGRAPHIC]

It’s old news that Toronto real estate prices have outstripped the incomes of many Torontonians; yet the average GTA home price is on the rise again, up 2.4 per cent year over year to $807,871, reports the Toronto Real Estate Board.

However, that number is an aggregate look at all home types – split out, the lack of affordability is even more defined. With the average detached house now priced at $1,354,429, a household would need to earn $240,000 to afford one.

Prices also continue to heat for condos which are rapidly losing their reputation as the only remaining affordable entry point to the market. With June prices coming in at a scathing $605,530, a household would need to earn $110,000 to own the average home in the sky.

Related Read: Where You Can Buy a Toronto Condo for Less than Average

How Affordable is the GTA?

Priced-out buyers have long been urged to seek options in more affordable communities outside the city core – but which GTA markets remain within the realm of affordability?

To find out, Zoocasa compiled the average home price in 33 markets tracked by TREB, as well as the minimum income required to afford them, and compared those findings to the median income earned in the region by dual- and single-income households. Affordability was calculated assuming a 20-per-cent down payment, a 30-year mortgage amortization, and a five-year fixed mortgage rate of 3.29 per cent.

According to the data, out of the 33 markets, 27 require a household income of at least $100,000 to afford the average-priced home. Only three – Oshawa, Essa, and Clarington – fall within the affordability range of the median dual-or-more income earning household. None are affordable for a household on the single-median income of $39,560.

Check out the infographic below for a ranking of affordability in the GTA, from most, to least affordable.

toronto-home-price-salary-affordability-zoocasa

The 5 Least Affordable GTA Markets

  1. King – Average Price:$1,403,162 Income required:$209,957
  2. Oakville – Average Price:$1,074,250 Income required:$165,088
  3. Richmond Hill – Average Price:$1,033,745 Income required:$159,567
  4. Markham – Average Price:$974,626 Income required:$151,501
  5. Toronto Central – Average Price:$966,088 Income required:$150,337

The 5 Most Affordable GTA Markets

  1. Oshawa – Average Price:$515,261 Income required:$88,840
  2. Essa – Average Price:$523,418 Income required:$89,953
  3. Clarington – Average Price:$532,908 Income required:$91,247
  4. Orangeville – Average Price:$560,735 Income required:$95,043
  5. Brock – Average Price:$582,455 Income required:$98,006

 

About Penelope Graham

Penelope Graham is the Managing Editor at Zoocasa. A born-and-bred Torontonian and quintessential millennial, she has over a decade of experience covering real estate, lifestyle and personal finance topics. When not keeping an eye on Toronto's hot housing market, she can be found brunching in one of the city's many vibrant neighbourhoods. Find her on Twitter at @pjeg14.