Zoocasa’s latest report compares average income and income required to buy the average home in major Canadian cities.
TL;DR: Montrealers on a single income fell $2,737 short of affording the average home in Montreal.
It found that single buyers could afford homeownership in most Eastern Canadian and Prairie provinces, while BC and the Golden Horseshoe were mostly out of budget.
To determine affordability in these markets, Zoocasa used the average home prices from regional real estate boards. It assumed a buyer would make a 20% downpayment and used a benchmark interest rate of 3.29%. These figures were compared to median income data of “persons living alone who earned employment income” as reported by Statistics Canada.
Most affordable areas
Homeownership is most affordable in Eastern Canada and the Prairie provinces. In Regina, the most affordable Canadian city, a single buyer earning the median income of $58,823 would enjoy an income surplus of $20,025 on the average priced home of $284,424.
Homes in St John, Calgary, Lethbridge, Winnipeg, and Halifax also fall within the realm of affordability for single-income purchasers.
Most expensive areas
Unsurprisingly, the least affordable housing markets were found in British Columbia and Ontario’s Greater Golden Horseshoe. A buyer earning the median of $50,721 would fall $88,361 short on the average $1,019,600 for MLS listings in Vancouver. In Toronto, Toronto where homes are the second-least affordable in Canada, a single buyer earning $55,221 would fall $46,858 short of the average home price of $748,328.
Other markets considered affordable for single buyers include Victoria, Guelph, Kitchener-Waterloo, London, Montreal, and Ottawa.
Buying Conditions in Montreal
Montreal fell within the category of unaffordable cities for single buyers, despite ranking at the bottom of this list.
The average home in Montreal cost $348,700 in January 2019 and December 2018. Based on this benchmark price, the required income required to carry the mortgage cost would be $47,566. The single Montrealers’ average income fell just short of this figure at $44,375. The 34-44 year age group came closest to affording a home on a single income, at $47,122. The income gap is $2,737.
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Read the full report on Zoocasa.com.
This article, Can You Buy a Home On a Single Income in Montreal?, appeared first on Shupilov News.