{"id":25019,"date":"2023-10-30T06:00:00","date_gmt":"2023-10-30T10:00:00","guid":{"rendered":"https:\/\/www.zoocasa.com\/blog\/?p=25019"},"modified":"2023-11-09T09:06:01","modified_gmt":"2023-11-09T14:06:01","slug":"years-it-takes-to-save-up-down-payment-canadas-most-affordable-cities","status":"publish","type":"post","link":"https:\/\/www.zoocasa.com\/blog\/years-it-takes-to-save-up-down-payment-canadas-most-affordable-cities\/","title":{"rendered":"This is How Long it Would Take to Save Up a Down Payment in Canada\u2019s Most Affordable Cities"},"content":{"rendered":"\n

The national average home price dropped<\/a> for the third month in a row in September, down from $750,100 in August to $741,400 in September, providing some relief for homebuyers grappling with high borrowing conditions. According to the Canadian Real Estate Association, local markets are also seeing prices cool off, with Edmonton<\/a>, the Greater Toronto Area<\/a>, Montreal CMA, and Greater Vancouver<\/a> all experiencing a month-over-over price decline in September. <\/p>\n\n\n\n

As prices begin to soften from their summer peaks, homebuyers have an opportunity to snag more affordable homes. Though many of the most sought-after markets still have benchmark prices above or nearing $1,000,0000, there are deals to be found in Canada\u2019s most affordable cities, many of which have benchmark prices below $500,000. <\/p>\n\n\n\n

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To find out how long it would take for a median-income household to save for the minimum down payment, Zoocasa analyzed single-family home benchmark prices in 15 of the most affordable cities in Canada and calculated the necessary down payment in each. For the purpose of this study, the most affordable cities were determined by analyzing the benchmark prices of cities included in the Canadian Real Estate Association\u2019s September 2023 monthly report. We then analyzed the median total household income in each city, according to Statistics Canada<\/a>, and calculated how many years it would take to save for the minimum down payment, assuming they are saving 5.1% of their annual income. The household savings rate of 5.1% was sourced from Statistics Canada<\/a> and was the household savings rate for Q2 2023. <\/p>\n\n\n\n

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It Takes 5 Years or Less To Save Up for the Minimum Down Payment in the Majority of Cities<\/h1>\n\n\n\n

Regina<\/a> is the city where saving for a single-family home down payment may be quickest, requiring 3.6 years of savings. Though Regina may not boast the most affordable single-family home prices, with homes at $326,300 in September 2023, it does enjoy one of the highest median household incomes among the cities we analyzed. At $88,000, the high median household income in Regina provides homebuyers with an edge over other cities that have lower benchmark prices and lower median household incomes. <\/p>\n\n\n\n

Fredericton<\/a> and Sault Ste. Marie<\/a> have the same median household income of $73,000 and nearly the same benchmark single-family home price, meaning it would take 3.9 years in both cities to save for the minimum down payment of $14,410 in Fredericton and $14,495 in Sault Ste. Marie. Fredericton has the most affordable single-family home price and Sault Ste. Marie has the second-most affordable, so it isn\u2019t surprising that these cities take less than 4 years to save for a down payment. <\/p>\n\n\n\n