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