Guess it's time to start saving up now.
The National Bank of Canada recently dropped its Housing Affordability Monitor report for the last quarter, and it's looking bleak for those hoping to buy in Toronto. This report considers two major hurdles prospective homebuyers face when looking for a place: how much they have to save for the down payment, and the monthly mortgage payments they'll have to make when they buy that home.
The bank reports that in the third quarter of 2021, the annual household income you need in order to afford the mortgage payments on the median house in Toronto racks up to $205,342 — a far cry from the current median income in the city, which sits at $86,875.
To save for the down payment alone, the bank estimates that a household making the median income would have to save for 330 months, or 27.5 years, in order to afford the current median house, which is priced at $1,195,754. That's by setting aside 10% of your salary each year.
Buying a condo in Toronto is, by comparison, a more realistic goal for prospective homebuyers. With the median condo price in the city at $669,593, those making the median income can eventually afford the down payment after 58 months (nearly 5 years) of saving. However, they'll need to be making $134,726 a year to afford the mortgage payments.
While it's frickin' expensive to buy a place in Toronto, Vancouver is far worse off. Anyone making the median income and looking to buy a house in Vancouver would have to save for 36 years (or 432 months) before buying the median house in this West Coast city. Yikes.
Quebec City has the most affordable housing market of the 10 cities listed, as those making the median income of $72,484 each year will only need to save for 28 months (just under 2.5 years) before they can land the median house at $339,134.
This article's cover image was used for illustrative purposes only.
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