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
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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Also read:
- Real Estate Statistics: What Days on Market Means
- Toronto Detached Homes Cost $1 Million (or 356%) Less 20 Years Ago
- How Much it Costs to Live Close to the Subway in Toronto
- It Can Take Decades to Save for a Down Payment on a House
