If you've been conscious in the Greater Toronto Area (GTA) over the past year or so, you're likely more than aware of the wild ride local real estate markets have gone on. Although many GTA homeowners lamented what seemed like ever-sliding property prices in 2022 following the February peak, it turns out there are some cities where homes actually ended up "earning" more than their residents last year.
A new report from brokerage Zoocasa analyzed 30 markets across the GTA, comparing median home price gains to the average after-tax household income to illustrate how home values increased relative to household earnings.
Just two markets saw median home price gains come out ahead of local income levels: Richmond Hill and Scugog. Scugog came out well ahead, with the median home there seeing a $133,063 price jump, equivalent to 145% of the $92K average after-tax income. In Richmond Hill, homes narrowly came out ahead, with the median price increasing by $91,706, equivalent to 103% of the $89K average after-tax income.
A handful of other markets' home price gains were almost on par with residents' income. Brampton, Mississauga, Toronto East, and Brock all had home price gains equivalent to 90% or more of after-tax household income.
As the report notes, prices in most GTA markets were still able to see overall gains in 2022 when compared to the previous year thanks to the extremely hot markets seen in the first part of the year that propped up annual average prices even as they slid on a month-over-month basis later in the year.
On the other end of the spectrum, some of the lowest-earning homes were found in Georgina, Stouffville, Clarington, Essa, and Innisfil, all with home price gains equivalent to 40-50% of after-tax household income.
Just three markets experienced overall losses for the year, with Uxbridge being the worst offender. There, the median home price fell by $63,115. Caledon and King also saw price drops, but by a much smaller $3,571 and $4,379, respectively.
