5 Most Affordable Housing Markets in Canada on One Income

If you’ve recently bought a home, or are currently shopping around for your dream condo, you’ll know that most of the Canadian Real Estate Market is booming. This means that a lot of the property for sale comes with a pretty big price tag, so you’re expected to either combine two salaries or have a parent willing to help with a downpayment. 

A recent report from Zoocasa reveals that even the least expensive Canadian cities expect a notable financial commitment from solo buyers. While it’s said that individuals should never pay more than three times their annual income, the average home buyer is spending well over that amount.

“Overall, even in the least housing expensive markets, homeownership is a significant expense for single people in Canada,” Zoocasa CEO Lauren Haw said. “Our report found that a single homebuyer would need to spend a minimum of four times their annual income to be able to afford a home on in their own.”

This report covered the various Canadian cities price-to-income ratio which was used as an ‘affordability measure’ to see how long it would take a homeowner to pay off their mortgage if they contributed 100% of their income to it. 

The Top Five Affordable House Markets in Canada Are: 

Saint John: 

4 years to pay off 

avg. home price: $171,596

avg. one-person income: $39,163

Greater Moncton: 

4 years to pay off 

avg. home price: $174,800

avg. one-person income: $39,456

Trois Riviers: 

4 years to pay off 

avg. home price: $153,591

avg. one-person income: $34,745

Fredericton: 

5 years to pay off 

avg. home price: $179,981

avg. one-person income: $34,724

Saguenay: 

6 years to pay off 

avg. home price: $161,587

avg. one-person income: $29,125

 

The Five Least Affordable Home Markets For Single Incomes Are: 

Greater Vancouver

28 years to pay off 

avg. home price: $1,071,800 

avg. one-person income: $38,164

Fraser Valley: 

25 years to pay off

avg. home price: $795,100

avg. one-person income: $31,568

Greater Toronto

19 years to pay off

avg. home price: $751,700

avg. one-person income: $39,560

Okanagan Mainline: 

18 years to pay off

avg. home price: $509,545

avg. one-person income: $28,900

Victoria: 

17 years to pay off

avg. home price: $642,800$509,545

avg. one-person income: $37,793$28,900

“Though we expected to see Vancouver and Toronto up at the top of the most unaffordable regions list, we were surprised to see just how high the price-to-income ratio was in these cities,” said Haw. “This demonstrates that homeownership in Canada’s major urban areas on a single income would be very difficult, if not impossible by measures of affordability.”

So what does this mean for those hoping to work in major urban areas? “Homebuyers may need to look at more affordable options within their respective regions to get into the market. That may mean a smaller condo apartment takes the place of the starter house in the more expensive regions of Canada,” she said. Your long list of home must-haves will have to be cut tremendously!

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