$99K in Edmonton, $328K in Vancouver: This is How Much You Need to Earn to Afford a Home in Canadian Cities in 2022

Yesterday, Alberta in a campaign inviting skilled workers to move to the province highlighted that one could buy 4 houses in Edmonton for the price of one in Vancouver. The latest Housing Affordability report by the National Bank of Canada confirms this with Edmonton being the most affordable of the markets analysed in the report.

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.

As per the latest report, Canadians are facing the worst deterioration in housing affordability in 41 years.

The report says housing affordability deteriorated in all the ten markets – Victoria, Toronto, Vancouver, Hamilton, Ottawa-Gatineau, Montreal, Winnipeg, Calgary, Quebec, and Edmonton ( in order of worst to bad).

Considering the median household income in each city, it takes 399 months to save for an average non-condo dwelling in Victoria, while it takes only 30 months of savings in Edmonton.

The report compares the household income required for a minimum cash downpayment for 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:

Toronto:

Average Non-Condo (detached/semi-detached house) Cost: $1,408,797
- - 382 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 98.2% of the median household income ($88,46) in GTA.
  - An annual household income of $265,664 is required to afford a home in GTA.
Average Condo Cost: $764,876
- - 70 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 53.3% of the median household income ($88,46) in GTA.
  - An annual household income of $168,159 is required to afford a condo in GTA.

Montreal:

Average Non-Condo Cost: $591,491
- - 56 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 50.1% of the median household income ($72,773) in Greater Montreal.
  - An annual household income of $131,376 is required to afford a home in Greater Montreal.
Average Condo Cost: $399,786
- - 33 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 33.9% of the median household income ($72,773) in Greater Montreal.
  - An annual household income of $89,525 is required to afford a condo in Greater Montreal.

Vancouver:

Average Non-Condo Cost: $1,743,716
- - 472 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 121.2% of the median household income ($88,663) in Greater Vancouver.
  - An annual household income of $328,822 is required to afford a home in Greater Vancouver.
Average Condo Cost: $733,013
- - 65 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 ($88,663) in Greater Vancouver.
  - An annual household income of $161,400 is required to afford a condo in Greater Vancouver.

Calgary:

Average Non-Condo Cost: $542,901
- - 39 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 37.4% of the median household income ($89,555) in Calgary.
  - An annual household income of $121,068 is required to afford a home in Calgary.
Average Condo Cost: $251,412
- - 17 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 17.3% of the median household income ($89,555) in Calgary.
  - An annual household income of $56,300 is required to afford a condo in Calgary.

Edmonton:

Average Non-Condo Cost: $440,982
- - 30 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 30.9% of the median household income ($87,890) in Edmonton.
  - An annual household of $98,751, is required to afford a home in Edmonton.
Average Condo Cost: $217,634
- - 15 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 15.3% of the median household income ($87,890) in Edmonton.
  - An annual household income of $48,736 is required to afford a condo in Edmonton.

Ottawa/Gatineau:

Average Non-Condo Cost: $726,248
- - 65 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 50.9% of the median household income ($87,972) in Ottawa/Gatineau.
  - An annual household income of $159,965 is required to afford a home in Ottawa/Gatineau.
Average Condo Cost: $408,600
- - 28 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 28.6% of the median household income ($87,972) in Ottawa/Gatineau.
  - An annual household income of $91,499 is required to afford a condo in Ottawa/Gatineau.

Quebec City:

Average Non-Condo Cost: $371,514
- - 30 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 ($75,399) in Quebec City.
  - An annual household income of $83,194 is required to afford a home in Quebec City.
Average Condo Cost: $243,787
- - 19 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 19.9% of the median household income ($75,399) in Quebec City.
  - An annual income of $54,592 is required to afford a condo in Quebec City.

Winnipeg:

Average Non-Condo Cost: $418,380
- - 32 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 32.5% of the median household income ($79,413) in Winnipeg.
  - An annual household income of $93,689 is required to afford a home in Winnipeg.
Average Condo Cost: $247,762
- - 19 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 19.2% of the median household income ($79,413) in Winnipeg.
  - An annual household income of $55,482 is required to afford a condo in Winnipeg.

Hamilton:

Average Non-Condo Cost: $1,055,735
- - 277 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 71.1% of the median household income ($91,497) in Hamilton.
  - An annual household income of $199,086 is required to afford a home in Hamilton.
Average Condo Cost: $744,302
- - 65 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 50.1% of the median household income ($91,497) in Hamilton.
  - An annual household income of $163,795 is required to afford a condo in Hamilton.

Victoria:

Average Non-Condo Cost: $1,248,717
- - 399 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 102.5% of the median household income ($75,118) in Victoria.
  - An annual household income of $235,477 is required to afford a home in Victoria.
Average Condo Cost: $644,960
- - 63 months of savings with a savings rate of 10 per cent of income for a minimum required down payment.
  - The mortgage payment is 52.9% of the median household income ($75,118) in Victoria.
  - An annual household income of $142,719 is required to afford a condo in Victoria.

More Information

$99K in Edmonton, $328K in Vancouver: This is How Much You Need to Earn to Afford a Home in Canadian Cities in 2022