Income required to buy a house in Calgary jumps again
Calgary was the only major Canadian city that saw a jump in income needed to buy a home, month-over-month, between October 2023 and November 2023.
According to a report released by mortgage platform ratehub.ca, Alberta’s largest city saw a nearly $700 increase in the yearly salary required to afford a mortgage with a 20% down payment for an average home price.
“Home values and the income required to purchase a home decreased in nine out of the 10 cities we looked at,” James Laird, co-CEO of ratehub.ca, said in a statement.
“Calgary was the only outlier, with $660 more income required to purchase the average home in this city and a home price increase of $2,000.”
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In November, the average income needed to afford a home in Calgary was $124,100. Even though it was the only major city in Canada surveyed that saw an increase, the number is still lower than a lot of the other areas.
People living in Vancouver, which is the priciest city in Canada for a home, need to make $246,900 to afford a mortgage according to the report. In Toronto, you’ll need $226,600.
Despite the high numbers, both of those are month-over-month decreases.
“Affordability improved for the second month in a row due to home values dropping and mortgage rates holding steady in November,” Laird said.
“We expect this trend to continue in December with rates and home values dropping.”
The study calculates the minimum annual income required to buy an average home in some of Canada’s major cities based on November 2023 and October 2023 real estate data.
It also factors in how changing mortgage rates, stress test rates and real estate prices are impacting the income needed to buy a home.
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