It might be time for some Vancouver wannabe homeowners to ask for a raise or find a side gig because living in the city has become even more challenging.
A new report from Ratehub.ca calculated the minimum annual income required to buy an average home in some of Canada’s major cities based on real estate data from February and March 2024.
The report details how changing mortgage rates, stress test rates, and real estate prices impact the income required to buy a home.
According to its latest affordability study, despite stabilizing mortgage rates and a slightly lower stress test, home prices increased by $13,500 between February and March to an average of $1,196,800. This means buyers needed to earn $2,270 more to purchase the average-priced home.
“While mortgage rates stayed relatively flat month over month, home prices increased, causing affordability to worsen,” James Laird, Co-CEO of Ratehub.ca and president of CanWise mortgage lender, said.
“The minimum annual income required to purchase an average home increased in 12 of the 13 cities we looked at because of the increase in home prices,” the statement added.
Ratehub.ca
Toronto saw the most significant increase again, with $3,400 in additional income required to purchase the average home. Toronto also saw the highest home price jump, increasing by $19,700.
Halifax was the only city that saw improvement, with $350 less income needed to purchase the average home. Laird noted that home prices were also down in this city by $1,600.
With files from Allison Stephen and Nikitha Martins