There’s at least five major cities in Canada where people can buy a home with an income under $100,000, according to a new report.
Canadian financial technology company Ratehub.ca calculated the minimum annual income required to buy an average home in 13 of Canada’s major cities based on February 2024 and January 2024 real estate data.
The data is based on a mortgage with a 20 per cent down payment, 25-year amortization, $4,000 annual property taxes and $150 monthly heating.
The results found that property prices rose in 12 of the 13 major markets across the county.
“The two key variables, which are home values and interest rates, have moved in opposite directions since January; interest rates are down and home values are up in 12 out of 13 cities. The increase in home values was enough such that affordability decreased in 11 of 13 cities despite the drop in rates,” Co-CEO of Ratehub.ca and President of CanWise mortgage lender James Laird said in the report.
The city with the largest income needed to buy a home is Vancouver with a whopping $230,350 income needed to buy an average home of $1,183,300.
Unsurprisingly, Toronto followed with a minimum income of $214,100 needed to buy a home at 1,093,900. And in third place for the most expensive market is Victoria, B.C. with an income of $169,300 required to buy an average home of $848,000.
On the flip side, there are five major markets where the minimum income needed is under $100,000. They include:
- Fredericton, NB Income required- $67,740, Average home price- $290,300
- Regina, SK: Income required- $71,440, Average home price- $310,600
- St. John’s, NL: Income required- $74,750, Average home price- $328,800
- Winnipeg, MB: Income required- $77,770, Average home price- $345,400
- Edmonton, AB: Income required- $83,220, Average home price- $375,300
Although these markets offer more affordable housing, home prices are set to rise across the country this spring with buyers returning to the market.
Home sales rose nearly 20 per cent in February compared to a year ago as anxious buyers are entering the market due to the prospect of lower rates this year, according to the Canadian Real Estate Association (CREA).
“After two years of mostly quiet resale housing activity there’s a feeling that things are about to pick up,” Larry Cerqua, CREA chair, said in a statement. “At this point, it’s hard to know whether buyers are going to wait for a signal from the Bank of Canada or whether they’re just waiting for the spring listings to hit the market.”
