How Much You Need to Earn to Buy a Home in the Greater Toronto Area

Hyder Owainati
by Hyder Owainati August 29, 2016 / No Comments

Over the last year alone, the average price of a home in Canada’s largest metropolis increased by $95,865—a near six-figure jump that adds even greater pressure on the wallets of Toronto house hunters.

New figures from TheRedPin brokerage suggests that even when factoring in a record low mortgage rate of 2.49%, the household income needed to afford an average home in the Greater Toronto Area (GTA) is $124,153.

The salary range is significant: Richmond Hill buyers require a total salary of $179,551 in order to afford a property in the popular York Region city, while in Brampton, required incomes hover around $108,246.

The one persistent theme however is that a six-figure household income is almost a must when buying an average house across the GTA, with the only exceptions being a couple areas in the east.

The brokerage broke down affordability by looking at average selling prices for all home types (houses and condos combined) on a per-city basis.

More reflective of needed incomes for repeat buyers who’ve already built up equity from a previous property, a 20% down payment was assumed. Property taxes and utility costs were factored in as well.

While the numbers may prove disconcerting to first-time buyers, the study found there are still affordable avenues for those looking to make their way into the market. For example, the average GTA condo apartment requires a household salary of $74,827, while in Oshawa, homebuyers would need to earn $87,801 to buy a house.

“A lot of the statistics and the reports tend to steer towards the detached home and semi-detached home markets,” said Luke Sheehan, TheRedPin’s marketing director in a CTV News interview. “A young person living in the downtown core of Toronto, still, we believe, has a pretty good and affordable chance of being able to own their own [condo].”

Income needed to buy a home in the GTA

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King

Average price $1,208,094
Household income required $205,525

Richmond Hill

Average price $1,066,569
Household income required $179,551

Oakville

Average price $995,666
Household income required $168,871

Markham

Average price $960,118
Household income required $161,662

Aurora

Average price $941,068
Household income required $162,741

Vaughan

Average price $921,714
Household income required $156,731

Whitchurch-Stouffville

Average price $920,463
Household income required $157,688

Caledon

Average price $768,988
Household income required $136,641

Newmarket

Average price $761,080
Household income required $134,605

East Gwillimbury

Average price $753,054
Household income required $132,365

Toronto

Average price $736,932
Household income required $124,126

Uxbridge

Average price $729,755
Household income required $134,712

Burlington

Average price $678,401
Household income required $118,893

Milton

Average price $629,536
Household income required $108,246

Mississauga

Average price $620,606
Household income required $109,560

Pickering

Average price $599,267
Household income required $113,595

Whitby

Average price $574,506
Household income required $109,671

Brampton

Average price $570,380
Household income required $105,743

Ajax

Average price $568,342
Household income required $108,207

Clarington

Average price $459,464
Household income required $90,141

Oshawa

Average price $427,790
Household income required $87,801

Brock

Average price $373,269
Household income required $76,057

Source: TheRedPin (based on average year-to-date selling prices for all home types)

TheRedPin.com is a full-service real estate brokerage that carries the largest database of residential listings in the Greater Toronto Area. Sign up for its newsletter simply by clicking here.

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