Edmonton sees a jump in income needed to buy a home

The income needed to afford a home in Edmonton last year continued to rise throughout 2023, but, compared to other major cities, Alberta’s capital was still affordable.

According to a report released by ratehub.ca, you’d need to make $85,430 in December 2023 to afford a mortgage with a 20% down payment, 25-year amortization, $4,000 annual property taxes, and $150 monthly heating.

That number is a $6,060 increase from what it was in January of the same year, and means that Edmonton saw the second-lowest increase among cities surveyed.

Only Winnipeg had a lower rise at $5,610.

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“This was a terrible year for home affordability in Canada; mortgage rates went up, driving the stress test higher and homes were more expensive in seven out of 10 cities,” James Laird, co-CEO of ratehub.ca, said in a statement.

“The income required to purchase a home increased significantly in all 10 cities.”

Further south in Calgary, the story was a little different.

The required income rose by $14,770 to $120,450 during 2023. Home prices there also increased by $44,600 over the year to an average of $554,500, ratehub.ca’s report says.

In 2024, things may be a little brighter for prospective buyers with economists predicting interest rate declines from the Bank of Canada could come as soon as spring.

In December, real estate franchiser Royal LePage issued a forecast projecting that the aggregate price of a home in Edmonton will increase by 4% in Q4 2024, compared to the same quarter in 2023.

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