Buying a house is a big step in one’s life, and according to a new report from the National Bank of Canada, you now need over $100,000 in annual income to afford a home in Calgary.
The National Bank of Canada released its quarterly Housing Affordability Monitor on Tuesday, which reported that housing affordability has deteriorated across the country. The typical mortgage payment now takes 45% of household income.
This was the second quarter in a row that the country saw a worsening in all markets.
Compared to every other major market in the country, affordability in Calgary dropped by one of the lowest amounts, coming in second to Edmonton.
That said, Calgary residents still need an annual household income of just over $100,000 to be able to afford an average home in the city.
In Calgary, a typical house that’s representative of the current real estate market is priced at $505,171. To afford this home, a buyer needs a household income of $102,961 and would have to have saved up for 34 months, based on a saving rate of 10%. That’s nearly three years.
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Buying a condo in Calgary is slightly more attainable. The representative condo in Calgary sits at $246,919. In order to afford that, you’ll need a household income of $50,353 and 17 months’ savings – just under a year and a half.
House prices in Calgary rose 3.3% over the quarter, while condo prices increased by 0.5%. However, according to the report, on an annual basis, Calgary grew more affordable, showing “the best annual improvement among markets covered.”