Those earning six figures will still need to save for 20+ years in some cities. 😭
It's time to start saving, Canada! A new report from the National Bank of Canada has revealed exactly how much money you need to be making to afford a house in some of Canada’s biggest cities — and nope, it’s not good news.
According to the data, shared in November 2021, housing affordability in Canada continued to get worse throughout the summer and into the fall of this year.
Per the report, “affordability [across Canada] has worsened the most in a decade” over the last year. Although interest rates have not changed too much, house prices themselves jumped to an extent that is “more than enough to reduce affordability.” Yikes!
For example, those hoping to buy a home in Toronto would now need an annual household income of $134,726 to afford a standard condo. If you’re saving 10% per month, it would take 58 months to have enough for a down payment.
To get a non-condo, Toronto buyers need to earn $205,342 annually and save for a whopping 330 months (which is 27.5 years).
Out west in Vancouver, your income would need to be $136,469 for a condo with 59 months of saving and $267,641 for a house with 432 months of saving. Ouch.
Things are a little better in Montreal though, where you’d need a household income of $75,249 to afford a condo and $106,699 to afford a non-condo. If you’re saving 10% per month, that’s 31 and 47 months respectively.
In Ottawa, house prices are on the up and prospective buyers need to have around $77,391 coming in to afford a condo and $133,071 to get a house.
The market in Calgary is considerably more affordable than Vancouver, as buyers need an income of $50,513 to get a condo and $105,495 to get a non-condo. Those purchases would require 17 or 36 months of saving.*
Over in Winnipeg, earnings would need to be $48,451 for a condo with 18 months of saving and $77,284 for a non-condo with 29 months of saving.
It might be time to crack open that piggy bank, eh Canada?
*This article has been updated.
This article’s cover image was used for illustrative purposes only.
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