Photo: James Bombales
While Ontario home prices have cooled dramatically from their April 2017 highs, many cities still boast some of the highest real estate prices in the country. Those looking to buy within the GTA will face steep prices, amid record low supply and high demand. But can the same be said of all Ontario markets?
In an effort to find out, Zoocasa has gathered the home-price-to-income ratios in each of Ontario’s major cities, using median household incomes from Statistics Canada, and average April 2018 home prices from the Canadian Real Estate Association.
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“This ratio helps determine the affordability of real estate within a region, in comparison to the median gross income earned there — it represents the number of years it would take to pay off the average home in full, if a household dedicated 100 per cent of its income to doing so,” writes Zoocasa managing editor Penelope Graham, in a statement. “According to financial experts, the ideal affordability ratio for shelter is three.”
According to Zoocasa’s research, there are just two housing markets in Ontario that meet this criteria, while none are in the realm of affordability for single-income earners.
Still, the most affordable markets at Thunder Bay, where the average home price sits at just $217,745 followed by Sudbury, Windsor, Ottawa and Kingston, with average prices of $268,696, $303,183, $418,232 and $366,582, respectively.
For a closer look at Ontario’s most (and least) affordable housing markets, take a look at the infographic below.