How Much You Need To Earn To Afford A Home In These GTA Cities
It’s old news that Toronto real estate prices have outstripped the incomes of many Torontonians. Nonetheless, the average GTA home price is on the rise — again.
GTA home prices are up 2.4 per cent year over year to $807,871, according to the Toronto Real Estate Board. That number is an aggregate look at all home types. When you split it out, the lack of affordability is even more defined.
With the average detached house now priced at $1,354,429, a household would need to earn $240,000 to afford one.
Prices also continue to heat up for condos, which are rapidly losing their reputation as the only remaining affordable entry point to the market.
With June averages coming in at a scathing $605,530, a household would need to earn $110,000 to own a home in the sky.
To find out how much you need to earn, just to afford one of the GTA’s (unaffordable) homes, Zoocasa compiled the average home price in 33 markets tracked by TREB — as well as the minimum income required to afford them. Then they compared those findings to the median income earned in the region by dual and single-income households.
Affordability was calculated assuming a 20-per-cent down payment, a 30-year mortgage amortization, and a five-year fixed mortgage rate of 3.29 per cent.
According to the data, out of the 33 markets, 27 require a household income of at least $100,000 to afford the average-priced home.
Only three – Oshawa, Essa, and Clarington – fall within the affordability range of the median dual-or-more income-earning household.
None are affordable for a household on the single-median income of $39,560.
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