New report reveals how much you need to make to afford a home in Toronto and 12 other Canadian cities
Affordability declined in most major housing markets in May, according to Ratehub.ca’s latest affordability report, with eight of 13 major cities becoming less affordable. However, four became more affordable, with a couple by large margins. Here’s how much money you need to make to live in 13 major cities across Canada.
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Affordability report Affordability declined in most major housing markets in May, according to Ratehub.ca’s latest affordability report, with eight of 13 major cities becoming less affordable. (Richard Buchan/THE CANADIAN PRESS)
Affordability report The report said that home prices crept higher while mortgage rates remained unchanged. The Bank of Canada held its overnight rate steady at 2.75 per cent at the beginning of June, keeping mortgage rates flat. (Jeff McIntosh/The Canadian Press)
Affordability report Ratehub says with rates holding firm, the shifts in affordability were entirely driven by rising home prices, adding that national home sales increased for the first time in over six months. (Christinne Muschi/The Canadian Press)
Affordability report The report adds that despite borrowing costs being lower than a year ago, housing market activity remains muted, and points to ongoing trade uncertainty, rising inventory levels, and concerns over job security and recession risk. (Justin Tang/The Canadian Press)
Affordability report Last month, the Canadian Real Estate Association (CREA) reported a 1.9 per cent monthly increase in the national average home price, up $12,800 to $691,299. (Frank Gunn/THE CANADIAN PRESS)
Affordability report Here’s how much money you need to make to live in 13 major cities across Canada. (Evan Buhler/The Canadian Press)
Toronto Toronto landed in the middle of the pack when it came to growing house prices, with costs rising by $3,400 to $1,012,800. That means Torontonians would need to make an extra $650 for an annual salary of $206,500 to afford a home and their mortgage payments would be $17 more per month. (Kamran Jebreili/AP)
Hamilton Hamilton saw the biggest improvement in affordability according to Ratehub, with home prices dropping $18,300. That lowered the required income by $3,480 to $163,020 and shaved $93 off monthly mortgage payments. (Chris Young/The Canadian Press)
St. John's In contrast, Ratehub said St. John’s recorded the steepest affordability loss, as home prices rose by $8,900, pushing income requirements up $1,690 to $86,450 annually and monthly mortgage payments by $45. (Adrian Wyld/The Canadian Press)
Halifax Another east coast city took the second spot for affordability loss. According to the report, the required income in Halifax to buy a home climbed by $1,430 to $122,830 a year. Monthly payments grew by $38 and home prices jumped by $7,600. (Kelly Clark/The Canadian Press)
Vancouver On the other side of the country, Ratehub says affordability eased in Vancouver, with house prices falling by $7,500. That lowered the required income by $1,420 to $237,550 a year and lowered mortgage payments by $38 a month. (DARRYL DYCK/THE CANADIAN PRESS)
Victoria Similarly, another west coast city, Victoria, also saw the income required to buy a home drop by $870 to $183,750. Monthly payments for mortgages reduced by $23, and housing costs fell by $4,600 to $872,700. (CHAD HIPOLITO/THE CANADIAN PRESS)
Regina On the flip side, Regina saw home prices jump by $5,400, which in turn saw mortgage payments climb by $27 a month, and the yearly income requirements balloon to $79,350—a $1,020 increase. (File photo)
Montreal Montreal came in just above Toronto in regards to a decline in affordability, according to the report. Housing prices grew by $5,200, with monthly mortgage payments surging $26, and the annual income required rising by $980 to $124,620. (Ryan Remiorz/The Canadian Press)
Ottawa The nation’s capital was one of four cities where the annual income needed to own a home dropped, dipping by $280 to $134,020. That was because housing prices lowered by $1,400, also leading monthly mortgage payments to decline by $17. (Sean Kilpatrick/The Canadian Press)
Winnipeg Home prices in Winnipeg climbed to $387,800—an increase of $2,500. The report says that means the average resident would need to earn $480 more a year—$88,250 total—and pay $13 more a month for their mortgage. (CTV News Winnipeg Photo)
Edmonton The necessary income required to own a home in Edmonton also got higher, with $240 more needed for an annual salary of $96,670. $7 extra is now needed for monthly payments to pay off the increase of $1,300 in the cost to own a home. (JASON FRANSON/THE CANADIAN PRESS)
Fredericton The last city to experience growth in the price of a home, according to Ratehub, was Fredericton. Housing costs grew by $1,000 in that city, leading residents to need to earn $200 more annually—$78,200 total, and to pay $5 extra per month for mortgage payments. (THE CANADIAN PRESS/Stephen MacGillivray)
Calgary The Alberta city was the only one in the report that saw no change in housing costs from April to May. The average cost of a home remained the same, at $583,000, meaning the annual income required also stayed the same at $125,170. (Jonathan Hayward/THE CANADIAN PRESS)
