Just how steep is housing affordability in Toronto and Vancouver?

By Penelope Graham, Zoocasa

Special to the Financial Independence Hub

It’s no secret that in order to purchase a house in Toronto or Vancouver, you’ll need to have considerable financial assets; however, a new study from Zoocasa reveals just how elite income earners need to be in order to afford the benchmark single-family home in these cities.

According to the data, which is based on benchmark home prices sourced from the Canadian Real Estate Association as well as income tax filings from Statistics Canada, a Torontonian buyer must be within the top 10% of earners to afford a house priced at $873,100, while only Vancouverites within the top 2.5% could do so for a home priced at $1,441,000.

The numbers also show that prices for entry-level housing, such as condos, remain out of reach for many; buyers must be within the top 25% of income earners to afford the benchmark unit, which costs $656,900 in Vancouver and $522,300 in Toronto, respectively.

Affordability is greater in Southern Ontario, Prairies

However, the study also highlights the comparative affordability in other cities; several of the secondary markets in Ontario, as well as in the Prairie provinces, are much more accessible in terms of housing prices.

For example, those interested in markets within proximity of the GTA, such as Waterloo real estate, need only be within the top 50% to purchase a condo priced at $320,857, though houses are still only in reach for those within the top 25%, at a benchmark of $523,720.

London is also a reasonable alternative for first-time buyers; those looking to purchase a house priced at $426,236 must be within the top 25%, though condos for sale in London are accessible to the top 50%, at $307,359.

Regina takes top spot for affordable Real Estate

Heading west, Regina is an especially affordable standout, with 75% of local income earners able to afford a house priced at $275,900, while those within the upper 50% percentile in Saskatoon and Winnipeg are within reach of houses priced at $301,900 and $326,433, respectively.

Condo buyers also enjoy widespread affordability in these cities, with units in all three locales accessible to the top 75% income group at benchmark prices of $160,200, $170,800, and 227,538.

Calgary condos and houses are also well-priced in comparison to larger markets – 50% can afford the benchmark house at $467,600, while the average multi-family residential unit is priced at $249,300 – within reach of the top 75% of income earners.

Check out the two infographics to see which income tier buyers must be in to afford houses and apartments across Canada.

Penelope Graham is the managing editor of Zoocasa.com,a real estate resource “that uses full brokerage service and online tools to empower Canadians to buy or sell their home faster, easier and more successfully.”