Edmonton named the most affordable major city to own a home in

The cost of living is an issue on many people’s minds, but if you are looking for an affordable place to buy a home, Edmonton is where you want to be.

A report recently released by Ratesdotca reveals that out of the 10 major cities it studied across Canada, Edmonton was the best place to gain homeownership.

The average home price is just enough for someone to afford a home in Edmonton, with the median household income landing at $91,912, the maximum insured mortgage/purchase price at $351,500 and $370,000, and the average home price settling at $370,100.

Taylor Pardy, an economist with Canadian Mortgage and Housing Corporation (CMHC), added that key reasons why Edmonton is the easiest to gain homeownership in was due to new construction that has been more responsive to changes in demand, home builders keeping up with demand, and lastly, slowed economic activity over the past few years.

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Looking at the situation through a national lens, Ratesdotca says a Canadian household making the median income of $79,876, for instance, can afford a home of $315,000 with a maximum insured mortgage of $299,500. However, the average home price across Canada is $757,600. That means the average home costs 141% more than this family can afford — otherwise known as the maximum purchase amount.

Ratesdotca

Things are certainly the worst in Vancouver and Toronto when it comes to homeownership, with it being nearly 250% and 210% more than what the average family can afford on a median income.

Our friends to the south of us in Calgary are also facing a bleaker picture, with the average home price in Calgary being 43% more than what the average household can afford.