Being single in Canada can be difficult and in many cases, it can also make you feel like you’re pushed out of the homeownership market completely.
That being said, it’s possible to buy an apartment in Canada on a single income, according to a new report.
Real estate firm Zoocasa has crunched the numbers to compile the top Canadian cities to buy an apartment for singles.
In order to do this, they looked at the minimum down payment needed to purchase a benchmark apartment in 15 regions across Canada, and then compared that with the after-tax median income earned by a single-person household in each spot.
Benchmark apartment prices are basically estimated prices based on other listings in the area.
The report looks at how long the average resident in these cities would have to wait to afford a down payment, if they were able to save 100% of their after-tax salary. While this calculation is probably because it's hard to predict spending habits, it is obviously not feasible for most.
So if you could save half your after-tax income in a month, for example, you’d have to double these time estimates for it to be more accurate. You'd also have to keep in mind that the cost of living differs in Canadian cities, which can also impact monthly savings.
What are the cheapest Canadian cities to buy an apartment as a single person?
And after breaking it down and looking at the median after-tax salary in these places, Zoocasa has deduced that Edmonton would be the best place for singles looking to buy an apartment.
That’s because a benchmark apartment price in Edmonton is $183,100, making the down payment only $9,155.
And with the average median salary there being $42,800 ($3,566 a month) that means that Canadians only need 2.6 months to put together a down payment.
Next on the list is Regina, with apartments priced at $208,200. Considering median after-tax income for a single household there, you’d have to wait approximately 2.9 months to put together a down payment.
Third on the list is also a Saskatchewan city. Sasktatoon’s reasonable benchmark apartment price ($225,500) and a median salary of $40,000 helped it nab the position. If you’re living here, you’d only have to wait 3.4 months before being able to put a down payment.
In the fourth and fifth position respectively are the cities of Winnipeg with property prices of $219,100 and Calgary where benchmark apartments are going for $303,100.
Considering the median after-tax income in both places, Canadians living there would have to wait only 3.5 months in Winnipeg and 4.1 months in Calgary, before they could afford that down payment.
Ottawa surprisingly comes next on the list, even though Ontario is known for some sky-high property prices. And while apartment prices are significantly higher there at $408,800, it’s the higher after-tax salary of $48,400 that helps its position on this list. So if you’re living and earning in Ottawa, you could have your down payment ready in 5.1 months.
Moncton, Vancouver Island, Montreal and Kitchener-Waterloo round up the 10 cheapest cities on this list, with the time needed to collect that down payment ranging between 5 and 7 months.
Most expensive Canadian cities to buy property as singles?
Meanwhile, on the other end of the spectrum, it should probably come as no surprise that Vancouver topped the list as the most expensive spot to buy a property.
With a benchmark apartment price of $737,400, a minimum of $48,740 would be needed to be put down to get a mortgage. And with average after-tax salaries being $42,000, that would mean 13.9 months of your income would be needed to secure the apartment.
Toronto comes next. With benchmark apartment prices being $703,700, Torontonians would need 13.2 months to afford a down payment.
That being said, it’s not all doom and gloom for potential homeowners in the 6ix.
According to a lot of stats, Toronto’s real estate market actually took a big drop earlier this month, with many homes selling for under $1 million.Meanwhile, if you're thinking about buying, Canada also has a new First Home Savings Account, and it could help you save more for that big purchase.
This article's cover image was used for illustrative purposes only.
