Canadian real estate listings are continuing to sell for an astronomical price. For most Canadians, the concept of homeownership is out of the question. Unless you are willing to spend half of your household income, owning a home is nearly impossible for those in the middle class. Almost all of the cities within Canada have sky-high housing prices. Despite these facts, properties in Edmonton are selling for substantially less money. Find out more about the affordability of the Canadian housing market by reading below.
Skewed Income to Homeownership Ratio in Canada.
In the past, it wasn’t as difficult for middle-class families to afford a home. In large cities, people were able to move to smaller areas and find more affordable real estate. However, this is no longer the case. Cities where families were once able to find refuge from high real estate prices are now too far out of reach for most people’s monthly incomes. The average middle-class family now needs to fork out over 50% of their monthly income in order to take on a mortgage. This has contributed to a large gap in affordability across the country.
For instance, in a place like Toronto, the average household would need to spend 75% of their income on their mortgage. This is over 50% more than what the previous generation needed to spend on their mortgages. Thus, making it extremely difficult for anyone to purchase a house in the Toronto area.
Another city in Canada that lacks affordable housing is Vancouver. Vancouver’s real estate is up there with some of the most expensive housing in the world. The discrepancy between income and housing price is vast in the Vancouver area. For example, the median household would need to spend nearly 82% of their income to pay monthly mortgage payments. This is the most extreme example in all of Canada.
The average family income would need to be 50% higher than what it is currently in order to comfortably afford your average home in Canada. Affordability has rapidly dissipated from the Canadian housing market. It has been over 27 years since the cost of living has been this high, this fast. Getting on the property ladder has never been so difficult for young buyers. This is because the average household needs to make 154k per year to afford a home.
Properties in Edmonton Are More Affordable than in Other Canadian Cities.
If you don’t make 154k per year, owning a home might seem impossible. Or, too risky for your budget. However, for those looking to make the move to Alberta, homeownership might be in the realm of possibility. Calgary and Edmonton are the only two major markets that boast affordability. Contrary to the rest of Canada, those living in Calgary only need to spend 27% of their income on their mortgages. This is a considerable decrease in price compared to cities like Vancouver or Toronto. In addition, Edmonton has seen an even bigger reduction in price. Edmonton homeowners only need to pay 25% of their income in order to carry a mortgage. Buying a home is more comfortable for middle-class families in Edmonton and Calgary.
Properties in Edmonton are starting to become even more affordable. This is thanks to higher salaries within the city, more supply, and slowing demand. Furthermore, taxes in Alberta are lower than in other provinces in the country. This ensures that families have a higher disposable income. In addition, your typical Albertan family is likely to be able to afford a home without any concern. Although, there still remains work to be done for low-income families and marginalized populations. Despite this, it is much easier for young buyers and new families to buy properties in Edmonton as opposed to other Canadian cities.
Contact Us About Properties in Edmonton!
The real estate market is much more affordable if you live in Edmonton. Make the decision to buy properties in Edmonton today for more financial comfort. If you have any questions or concerns about buying a property in Edmonton, contact us today. Don’t hesitate to reach out if you’re interested in buying a new home. Our team can put you in touch with the resources you need to get your real estate goals on track. Be sure to check out our social media for the latest updates and more! We look forward to working with you in the near future!