While it continues to be a struggle for Calgary’s economy, housing prices for first-time homebuyers are at least within the relative realm of affordability, especially when compared to other Canadian cities.
A new report released today by Zoocasa found that it currently takes just one year to save up for a 5% downpayment to buy an average priced home in Calgary for a median income household, with 20% of their income set aside for this expense.
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This is calculated based on the city’s average home price of $420,500, median household income before tax of $99,583, and maximum mortage of $415,454.
One-year timelines are also shared with Edmonton, Halifax, Winnipeg, Saskatoon, and Regina.
These cities are well below the national average of 25 years for a down payment.
Contrast this with Vancouver’s housing market, where it currently takes 52 years to save up for a 76% down payment — equivalent to $751,306 — for an average priced home of $993,300.
BC’s Fraser Valley and capital city of Victoria fair slightly better with timelines of 42 years and 30 years, respectively.
Toronto’s down payment timeline sits at 32 years, based on a 63% down payment of $502,226 on an $802,400 average priced home.
Canada’s second largest city, Montreal, is also within the realm of affordability with its down payment timeline hovering at eight years, based on a 27% down payment of $99,393 on a $369,500 average priced home.
In seven housing markets in the country, a median-income earner would not qualify for a mortgage sufficient to fund their home purchase, and would require a hefty down payment.