Thousands saved: Income needed to afford a home in Edmonton dips
While needing a six-digit income to afford a home remains the norm in much of Canada, a new report shows Edmonton remains an outlier among major cities when it comes to affordable house prices.
AĀ report from Ratehub.ca calculated the minimum annual income required to buy an average home in some of Canada’s major cities based on December 2023 and January 2024 real estate data.
The report details how changing mortgage rates, stress test rates, and real estate prices are impacting the income required to buy a home.
In December 2023, Edmontonians hoping to buy a home needed to make $85,430 per year to afford one. That dipped slightly in January to needing $82,730 in take-home pay. Home prices also decreased somewhat (š»$400) to $370,100.
“The income required to purchase a home decreased in every city we looked at,” James Laird, co-CEO of Ratehub.ca and president of CanWise mortgage lender.
“In cities where home prices increased, the drop in interest rates was enough to offset the price increases such that affordability still improved.”
Our neighbours to the south in Calgary were one of a handful of cities to see an increase in house costs (šŗ$3,000), though the average income required to purchase a home in that city fell by a similar $3,350.
Ratehub.ca
Cities including Edmonton, Vancouver and Toronto saw average house prices decrease in January. While buying conditions have slightly improved, a warmer-than-expected January market could mean this affordability break for buyers could be short-lived, Ratehub noted.
The Canadian Real Estate Association found that sales rose by 22% year-over-year, the highest annual gain since May 2021.