You need to make nearly $88K to afford an average Edmonton home

Buying a home is a major step in adulthood for Edmontonians, and according to Rate Hub, hopeful homeowners need to make nearly $88,000 yearly to afford one.

Edmonton was the second most affordable city out of the 10 cities sampled, with only Winnipeg besting YEG.

The average home price in September 2023 in Edmonton landed at $373,400, a decrease of $700 from the prior month; however, an increase in the stress test and mortgage rate offset that drop.

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Edmontonians required $1,390 more cash to buy a home in September compared to August, which is not welcome news to our wallets.

“The stress test is the highest it has ever been, exceeding the high water mark that was set last month,” says James Laird, Co-CEO of Ratehub.ca and president of CanWise mortgage lender, on its website.

“Home 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.”

Ratehub.ca

Vancouver led the country with a wicked $250,000 income required to buy a home, followed by Toronto at $235,100 and Victoria at $187,900.

Our friends to the south of us in Calgary require a way higher salary to afford a home, with residents needing an income of $123,000 to buy a home.

According to Laird, softening in market prices isn’t enough to counter today’s steep borrowing costs, with little relief on the horizon for home buyers until the Bank of Canada actively starts to cut rates.

“Home values are going to need to drop a lot more to offset the impact of the sharp rate increases,” he added.