If you're wondering how much money you need to make to afford to buy a home in Canada, a new housing affordability report has got you covered.
According to Zoocasa, though the "record highs from early 2022" are pretty much gone, year-over-year prices are still up from last year in many Canadian cities.
Coupled with rising interest rates, buying a home in Canada is difficult for many residents.
To give Canadians an idea of what kind of money they'd need to be making to afford a home, Zoocasa has released a report detailing average home prices in 20 different cities across Canada and comparing the median income in those cities to the income required to buy a property there.
Cost of buying a home in Canada
According to the report, in cities like Toronto and Vancouver, which are known for their expensive housing markets, the income required to afford a home is $176,738 and $200,400 respectively.
The average home price in Toronto for September 2022 was $1,086,762. In Vancouver, this number was even higher at $1,232,213.
The median household incomes in these markets, however, are not enough to afford these prices. In Toronto, the median income is $96,700. It's only slightly higher in Vancouver at $98,640.
According to Zoocasa, this means that the maximum affordability of the median household incomes in Toronto and Vancouver are $545,020, and $555,953, respectively, a drastic difference compared to the average home prices in these markets.
In Victoria — which has the third-highest home prices on the list — the income required to purchase a home (which had a price of $967,046 in September) is $157,275, however, the median income in the city is $106,900.
Likewise, in Montreal, the median income falls short of what's required to purchase the average home, with a maximum affordability of $541,807 compared to the average home price of $590,935.
Perhaps unsurprisingly, most of the other cities included in the report where the median income is less than required for the average home are in Ontario.
This includes Niagara, Hamilton, Kitchener-Waterloo, London and Kawartha Lakes.
Affordable housing in Canada
In Western Canada, Calgary, Edmonton, Winnipeg, Saskatoon and Regina all came out as cities where the median household income was more than enough to purchase a home.
In Atlantic Canada, Halifax and Saint John were also listed as places where residents can generally afford to buy a property.
Newfoundland was also included as a region where the median household income is enough to purchase a home, though home prices likely vary from city to city in the province.
In Ontario, only two cities were considered affordable for those who want to buy a home.
In Ottawa, the median income is reported to be $121,790 — more than the required $105,038.
Likewise, in Thunder Bay, the median income of $99,560 is more than the required $51,713 to purchase a home.
Which cities have the cheapest houses in Canada?
Based on the report, the city with the cheapest home price in September 2022 is Saint John, New Brunswick, where the average home price was $296,809.
This is followed by Regina ($305,335), Thunder Bay ($318,045) and Saskatoon ($350,571).
However, according to Zoocasa, the most affordable market is actually in Western Canada.
With the average home costing $305,550 and the median income sitting at $106,340, Regina works out to be the most affordable city in Canada when it comes to buying a home.
This article's cover image was used for illustrative purposes only.
