Calgary 
Zoocasa has released a new study which analyzed 16 census municipalities to determine how much income was required to afford a home at the benchmark price.
While results show what most Canadians know – homes in the Prairies and on the East Coast are more affordable than the ones in Ontario or British Columbia, it highlights the fact that the residents still need to be in a higher income group to afford them due to income variations in each city.
According to the study, Hamilton and KW region buyers need to earn an income of $138,788 and $127,200, respectively, putting them in the top 5% income earners in those cities.
No locations in the 16 analysed municipalities from British Columbia to Newfoundland afforded lower than top 10% income owners the luxury of owning a single detached family home.
Credit: Zoocasa
A single-family home in Vancouver, Toronto, and Victoria would require the top 1% of earners – an income of $280,125, $200,063, $172,088, respectively.
In all other analyzed locations from Calgary to St. John’s, residents must be in the top 10% to afford a single detached house.
Zoocasa also analysed the single income required to afford townhomes and condo apartments.
For townhouses, a buyer in Vancouver would require an income of $160,538 to afford one, placing them firmly in the top 1% of earners, while in Edmonton, Regina or St John’s, a prospective buyer would need to be in the top 50% of earners. Aspirant townhome buyers in other cities need to be top 10% of earners.
Credit: Zoocasa
Regarding condo apartments, buyers in Edmonton, Winnipeg, Saskatoon, Regina, St John’s, and Saint John would need to be in the top 50% of earners to afford one.
Credit: Zoocasa
While the analysis considers single income, previous reports by the full-service brokerage firm show that residents of Prairie and the East Coast cities can afford to buy a house on median household income.
Zoocasa says income used in the analysis was sourced from Statistics Canada, and the income required to afford the home was calculated using Ratehub mortgage affordability calculator, assuming a 20% down payment, a mortgage rate of 4.69%, and a 30-year amortization. Benchmark home prices were sourced from the most recent data from the Canadian Real Estate Association.
