These are the most affordable (and least affordable) housing markets in Ontario
Believe it or not, Toronto doesn’t take the top spot for the most unaffordable housing market in Ontario.
According to recent data compiled by Zoocasa, that spot goes to the residential suburb of Richmond Hill, where locals earning the median household income of $88,535 would find themselves $47,962 short to purchase a home at the average price of $999,311.
And by comparison, a Torontonian earning the city’s median household income of $65,829 would find themselves $41,282 short of the average home price of $785,223, states Zoocasa.
The data also shows that Toronto’s unaffordability ranking is because of its diverse housing. For example, condo sales made up for 56% of transactions that occurred in August, in comparison to detached home sales in Richmond Hill, which saw 52% of sales in the area. Zoocasa explains that a greater proportion of more expensive home types sold skews the average home price – and affordability gap – higher, to near the million-dollar mark at $999,311.
In their research, Zoocasa states that a region’s housing affordability is dependent on more than just the average home price, and that incomes must also be aligned in order for residents to afford to purchase properties.
So which of our local markets are most affordable?
To determine this, Zoocasa calculated the required take-home pay to purchase the average home in 28 major markets across the province, assuming a 20% down payment is made at a mortgage rate of 3.14% and a 30-year amortization.
This amount was then compared to the actual median household income in each region, to determine whether local home buyers face an income gap or surplus when attempting to enter the market.
Check them out below:
Courtesy of Zoocasa
The most affordable housing markets in Ontario
1 – Thunder Bay
Average Home Price: $227,750
Required Income: $31,067
Median Income: $66,163
Surplus: $35,096
2 – Sudbury
Average Home Price: $272,523
Required Income: $37,174
Median Income: $68,736
Surplus: $26,901
3 – Ottawa
Average Home Price: $433,684
Required Income: $59,158
Median Income: $85,981
Surplus: $26,823
4 – Whitby
Average Home Price: $632,395
Required Income: $86,264
Median Income: $103,809
Surplus: $17,545
5 – Waterloo
Average Home Price: $493,358
Required Income: $67,298
Median Income: $83,045
Surplus: $15,747
The 5 least affordable Ontario housing markets
1 – Richmond Hill
Average Home Price: $999,311
Required Income: $136,315
Median Income: $88,353
Income Gap: $47,962
2 – Toronto
Average Home Price: $785,223
Required Income: $107,111
Median Income: $65,829
Income Gap: $41,282
3 – Vaughan
Average Home Price: $997,587
Required Income: $136,079
Median Income: $105,351
Income Gap: $30,728
4 – Markham
Average Home Price: $875,182
Required Income: $119,382
Median Income: $89,028
Income Gap: $30,354
5 – Oakville
Average Home Price: $1,030,482
Required Income: $140,567
Median Income: $113,666
Income Gap: $26,901
Courtesy of Zoocasa