Affordability hunters in the province should seriously consider these destinations
For home buyers in Toronto who feel increasingly pressured out of the market by elevated costs, there is no better destination right now than Thunder Bay, according to a new analysis of data from Ontario’s real estate boards by information portal Zoocasa.
The study noted that buyers in Thunder Bay would only need $31,067 in income (as of August) to purchase an average home priced at $227,750. The required purchase income is far below the market’s median income of $66,163, which means that an average household buying a home will still have $35,096 left over.
Ontario’s other affordability destinations right now are:
Average Home Price: $272,523
Required Income: $37,174
Median Income: $68,736
Average Home Price: $433,684
Required Income: $59,158
Median Income: $85,981
Average Home Price: $632,395
Required Income: $86,264
Median Income: $103,809
Average Home Price: $493,358
Required Income: $67,298
Median Income: $83,045
On the opposite end of the spectrum, Toronto – while only the second least affordable as of August – still requires $107,111 in income to purchase a home on the average price point of $785,223. Median household earners with incomes of $65,829 will find themselves $41,282 short in their purchase.
This is despite the condo segment – dubbed by various observers as a viable affordability choice – representing approximately 56% of Toronto’s residential real estate sales volume last month.
Richmond Hill took the top spot of Ontario’s most unaffordable market in August. Median earners with incomes of $88,535 would be $47,962 short in a purchase of an average home priced at $999,311.