It takes less than four years to save up for a down payment in this Canadian city
Looking to set down roots in a relatively affordable Canadian city? The good news is it only takes a few years to save for a down payment.
The temperature isn’t the only thing dropping this fall. This year, the typically busy season for the real estate market shows that prices continue to drop across the country.
According to Zoocasa, the national average price for a home has dropped “for the third month in a row in September, down from $750,100 in August to $741,400 in September.”
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Even as prices drop, the $1 million average price tag for a home in Canada’s most expensive cities means homeownership might seem impossible for many.
However, a recent report by Zoocasa shows that buying a home might be much more realistic in Canada’s most affordable cities, where average home prices are below $500,000.
So, how long would it take you to save for a down payment in these cities?
Zoocasa looked at the median total household income in each Canadian city and the price of homes in the area and calculated how long it would take to save for a down payment “assuming they are saving 5.1% of their annual income.”
The result: on average, it would take five years or less to buy a home in these more affordable markets. But if you’re dead set on buying a home soonish, Regina is your best bet.
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“Regina is the city where saving for a single-family home down payment may be quickest, requiring 3.6 years of savings,” reads the report.
The city has a median total household income of $88,000 and homes cost an average of $326,300.
Other cities worth considering are Fredericton, New Brunswick, and Sault Ste. Marie, Ontario, where those with an average income of $73,000 can afford a single-family home in just 3.9 years.
“Fredericton has the most affordable single-family home price and Sault Ste. Marie has the second-most affordable, so it isn’t surprising that these cities take less than four years to save for a down payment,” reads the report.
Looking to keep your options open?
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Other possible contenders include Winnipeg, Edmonton, Greater Moncton, St. John’s, Saskatoon, and the Quebec Census Metropolitan Area (CMA), which will take you less than five years to save for that down payment.
And if you’re having trouble deciding, here’s something to consider.
“Edmonton has the highest median household income of the cities we analyzed, at $96,000, meaning it would take homebuyers just 4.3 years to save up the $21,200 required for the down payment,” states that report.
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Sault Ste. Marie seems to be an exception since it only takes 3.9 years to save up for a down payment in this Ontario city, but it still takes a while longer in other cities in the province. Even more affordable Ontario cities like North Bay and Sudbury require at least “5.1 years and 5.2 years, respectively,” to save up for a down payment.
The most expensive city on the list is Bancroft and Area in Ontario, which consists of country land and small towns. The $472,700 estimated price for a single-family home might sound like a dream for those coming from expensive cities; however, in an area with a median household income of just $57,200, it would take residents up to 8.1 years to save up the $23,635 down payment.
“Homebuyers need to note that as home prices fluctuate and typically increase over time, the exact number of years you will need to save for a down payment will likely be longer than the time it takes to buy a home priced at the September 2023 benchmark,” states the report.
Check out the report here and the full list below.
Zoocasa
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