$146K in Calgary, $322K in Vancouver: This is How Much You Need to Earn to Afford a Home in Canadian Cities in 2023

Though you need $322,245 and $236,221 as annual household income to afford a representative non-condo home in Metro Vancouver and Toronto, respectively, the latest Housing Affordability Report finds that Canadian housing affordability experienced its largest improvement in 15 quarters.

The Housing Affordability Report measures housing affordability in 10 of the major CMAs in Canada by analyzing various factors, such as the time period aspiring home buyers need to save for a down payment to afford an average house (single detached or semi-detached) or condo.

The report for the first quarter of 2023 by the National Bank of Canada says the mortgage payment on a representative home as a percentage of income (MPPI) decreased by 3.2 points, following a 2.2-point decrease in the previous quarter. Seasonally adjusted home prices also decreased by 2.4% during this period, while the benchmark mortgage rate (5-year term) dropped by 14 basis points. Median household income rose by 1.3%.

The report finds that affordability improved in all ten markets covered, with Vancouver, Hamilton, and Toronto leading the way. The condo portion saw a 1.8 percentage point improvement, while the non-condo segment improved by 3.8 percentage points.

The report compares the household income required for a minimum cash downpayment for a CMHC-insured mortgage to own an average home with a savings rate of 10 per cent pre-tax income.

The report also calculates the monthly payment as a percentage of median household income in a CMA on a median-priced home assuming a 25-year amortization and a 5-year term.

The income required to afford a property is the household income assuming 32% pre-tax income for a mortgage payment at the current rate.

This is how much you need to earn to afford a home in Canada’s big cities:

Credit: Housing Affordability Report/National Bank of Canada

Toronto:

Average Non-Condo (detached/semi-detached house) Cost: $1,163,670
- - 304 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 84.7% of the median household income ($91,858) in GTA.
  - An annual household income of $236,221 is required to afford a home in GTA.
Average Condo Cost: $695,691
- - 58 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 50.6% of the median household income ($91,858) in GTA.
  - An annual household income of $165,220 is required to afford a condo in GTA.

Montreal:

Average Non-Condo Cost: $542,354
- - 45 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 46.2% of the median household income ($78,495) in Greater Montreal.
  - An annual household income of $130,202 is required to afford a home in Greater Montreal.
Average Condo Cost: $403,296
- - 31 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 34.4% of the median household income ($78,495) in Greater Montreal.
  - An annual household income of $97,218 is required to afford a condo in Greater Montreal.

Vancouver:

Average Non-Condo Cost: $1,587,439
- - 454 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 126.4% of the median household income ($83,966) in Greater Vancouver.
  - An annual household income of $322,245 is required to afford a home in Greater Vancouver.
Average Condo Cost: $721,230
- - 67 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 57.4% of the median household income ($83,966) in Greater Vancouver.
  - An annual household income of $171,052 is required to afford a condo in Greater Vancouver.

Calgary:

Average Non-Condo Cost: $612,630
- - 48 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 45.5% of the median household income ($90,002) in Calgary.
  - An annual household income of $146,251 is required to afford a home in Calgary.
Average Condo Cost: $316,104
- - 21 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 23.5% of the median household income ($90,002) in Calgary.
  - An annual household income of $76,200 is required to afford a condo in Calgary.

Edmonton:

Average Non-Condo Cost: $461,563
- - 31 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 34.1% of the median household income ($90,493) in Edmonton.
  - An annual household of $111,264, is required to afford a home in Edmonton.
Average Condo Cost: $252,713
- - 17 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 18.7% of the median household income ($90,493) in Edmonton.
  - An annual household income of $60,919 is required to afford a condo in Edmonton.

Ottawa/Gatineau:

Average Non-Condo Cost: $703,112
- - 56 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 48.0% of the median household income ($97,894) in Ottawa/Gatineau.
  - An annual household income of $166,914 is required to afford a home in Ottawa/Gatineau.
Average Condo Cost: $396,329
- - 24 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 27.1% of the median household income ($97,894) in Ottawa/Gatineau.
  - An annual household income of $95,539 is required to afford a condo in Ottawa/Gatineau.

Quebec City:

Average Non-Condo Cost: $354,445
- - 27 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 30.4% of the median household income ($77,974) in Quebec City.
  - An annual household income of $85,442 is required to afford a home in Quebec City.
Average Condo Cost: $256,227
- - 20 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 22.0% of the median household income ($77,974) in Quebec City.
  - An annual income of $61,766 is required to afford a condo in Quebec City.

Winnipeg:

Average Non-Condo Cost: $385,507
- - 28 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 31.4% of the median household income ($82,077) in Winnipeg.
  - An annual household income of $92,930 is required to afford a home in Winnipeg.
Average Condo Cost: $271,441
- - 20 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 22.1% of the median household income ($82,077) in Winnipeg.
  - An annual household income of $65,433 is required to afford a condo in Winnipeg.

Hamilton:

Average Non-Condo Cost: $933,437
- - 93 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 70.8% of the median household income ($88,109) in Hamilton.
  - An annual household income of $219,514 is required to afford a home in Hamilton.
Average Condo Cost: $671,694
- - 57 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 51.0% of the median household income ($88,109) in Hamilton.
  - An annual household income of $159,739 is required to afford a condo in Hamilton.

Victoria:

Average Non-Condo Cost: $1,138,904
- - 336 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 93.7% of the median household income ($81,237) in Victoria.
  - An annual household income of $231,194 is required to afford a home in Victoria.
Average Condo Cost: $605,981
- - 53 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 49.9% of the median household income ($81,237) in Victoria.
  - An annual household income of $144,732 is required to afford a condo in Victoria.