You need to make $123,000 a year to afford a house in Calgary
A new report from ratehub.ca shows that despite real estate prices dipping across the country, Canadians are increasingly struggling to afford to own their own properties. It’s now estimated that Calgarians need to make $123,000 annually to buy a house in the city.
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The analysis was based on monthly data collected from the Canadian Real Estate Association, which highlighted the impact of changing mortgage rates on affordability.
Fixed mortgage rates have been climbing, and the Bank of Canada’s overnight lending rate is sitting at 5%. The report looked at month-to-month changes from August to September, and while there wasn’t a huge difference in this time period (an increase of 0.1%), it was enough to impact affordability for Canadians.
ratehub.ca
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āThe stress test is the highest it has ever been, exceeding the high water mark that was set last month,ā says James Laird, co-CEO of Ratehub.ca and president of CanWise mortgage lender.
āHome values dropped in all 10 cities we looked at, yet still became less affordable. August to September data highlights how impactful even a minor rate increase is on affordability.ā
Many Calgarians might consider looking north as Edmonton’s housing market is starting to look a lot more appealing. The average income needed to buy a house is over $40,000 less than in Calgary at $81,860.