Although prices are expected to decline further in 2023, the average home in Toronto still costs well over $1M, keeping it out of the realm of affordable housing.

Beyond Toronto's pricey properties, though, Ontario still harbours several sizeable markets where budget-friendly abodes can be found and where mortgage payments won't eat up your entire paycheque -- a vital factor in determining affordability.

According to a recent survey commissioned by RE/MAX Canada, 18% of Canadians define affordable housing as allocating 30% to 40% of their monthly household income towards housing costs, like mortgage payments and property taxes. (Per the CMHC, housing is considered “affordable” if it costs less than 30% of a household’s before-tax income.)

Based on that definition and Ontario's estimated average monthly income of $5,987.71, RE/MAX Canada determined three significant real estate markets across the province that continue to offer relative affordability.

Thunder Bay

Affordable HousingThunder Bay, Ontario/Shutterstock

Although home sales in Thunder Bay have increased over the past two years, driven mainly by the pandemic-induced urban exodus, they're expected to decrease by 5% in 2023. According to Mario Tegola, a local broker and the owner of RE/MAX First Choice Realty, downsizing seniors and first-time buyers will drive the ensuing market activity.

In 2023, the average home is expected to cost $338,366.25, requiring a down payment of $67,673.25. The average mortgage in Thunder Bay is $270,693, with monthly payments amounting to $1,674. Based on the average provincial salary, residents allocate 'just' 26.95% of their monthly income to their mortgage.


Affordable HousingSudbury, Ontario/Shutterstock

With more move-over buyers flocking to Sudbury from pricer urban areas, average sales are expected to increase by 6.5% in 2023, keeping the city in a seller's market. Despite the anticipated increase, and the fact that there have been no improvements to affordability over the last three years, housing in Sudbury remains attainable, with the estimated average price for 2023 sitting at $490,161.51.

The average down payment required is $98,032, and the average mortgage costs $392,128. Monthly payments amount to $2,426, meaning that Sudbury residents allocate 39% of their monthly income to their mortgage.


Windsor ontarioWindsor, Ontario/Shutterstock

It's expected that in the first half of 2023, home prices in Windsor will plateau while sales decline. However, both should rebound in the latter half of the year. As with other still-affordable cities, the price jump is being driven by buyers moving in from more expensive regions.

The estimated average home price in 2023 is $649,278.01, requiring an average down payment of $129,855 and leading to an average mortgage of $519,422. Each month, Windsor residents spend $3,213 on their mortgage, or 51.72% of their income.

Affordable Housing