Statistics released by Ratehub.ca on April 17 reveal that more income is required to purchase a home in cities such as Toronto and Vancouver as of March 2023, compared to the same time last year. Ratehub.ca co-CEO James Laird says buying a home has become more expensive year-over-year due to rising mortgage and stress test rates.
“Even though home values are down in nine out of 10 cities we looked at, affordability has actually gotten worse because rates have increased so much that Canadians now qualify for less compared to a year ago,” Ratehub.ca co-CEO James Laird said in a press release.
While average mortgage rates in Canada have begun to creep downward, they remain higher than they were a year ago.
Based on MLS home price index benchmark prices released by the Canadian Real Estate Association on April 14, the average price of a home in the Greater Toronto Area, for example, was $1,118,500 in March 2023, compared to $1,335,000 in March 2022. Despite this drop, the minimum annual income required to buy an average home in the city has increased by $6,250 within the same amount of time, due to a rise in average mortgage rates.
The additional required income is calculated using a mortgage rate of 5.54 per cent in March 2023 and 3.14 per cent in March 2022. These figures represent an average of five-year fixed-rate mortgages offered by Canada’s five largest banks at the time, according to Ratehub.ca. They also take into account stress-test requirements that must be met before obtaining a mortgage.
The data is also based on a mortgage with a 20-per-cent down payment and amortization period of 25 years. Additionally, $4,000 in annual property taxes and a monthly heating bill of $150 are included in the final calculations.
Data compiled by Ratehub.ca shows homebuyers must make between $5,650 and $21,360 more per year to purchase a home in major Canadian cities in March 2023, compared to March 2022.
Residents of Vancouver are seeing the largest change in income required to purchase a home, while Hamilton was the only city in the report to see a drop in the minimum annual income required to purchase an average home year-over-year. As of March 2023, $165,940 was needed to buy a home in Hamilton. Exactly one year prior, an annual income of $170,400 was required to purchase a home.
According to Laird, a limited supply of new listings, combined with strong demand from homebuyers, means housing affordability is unlikely to improve in the months to come.
CTVNews.ca has compiled a list of homes currently on the market in major Canadian cities, as well as the minimum annual income needed to purchase a home in these areas.
VANCOUVER
(ONIKON Creative / Pouria Sadeghi, eXp Realty)
Type: Apartment
Price: $1,099,000
Year Built: 1993
Property Size: 88.56 sq. m
Lot Size: N/A
Minimum annual income required (as of March 2023): $221,580
This renovated penthouse is situated in Vancouver’s Yaletown neighbourhood and offers panoramic views of the city. The open-concept floor plan includes a kitchen with an oversized island, wood cabinets and stainless steel appliances. The apartment building is located near stores, restaurants and public transit, offering quick access to the downtown core.
VICTORIA
(Matt Lawson, All In One Real Estate Photography / Veronica Crha, Re/Max Camosun – Oak Bay)
Type: Apartment
Price: $875,000
Year Built: 2006
Property Size: 127.56 sq. m
Lot Size: N/A
Minimum annual income required: $168,750
On the main floor of this Victoria penthouse is a combined kitchen, dining and living area with three large picture windows. Also on the main level is a bedroom and four-piece bathroom. An additional bedroom and bathroom are located on the upper level and at the top of the unit is a rooftop deck.
Recently renovated to include a suite on the lower level, this Calgary bungalow has a total of five bedrooms and two bathrooms. On the lot is a fully fenced backyard with a concrete patio and a separate two-car garage. The house is situated near schools and playgrounds, and remains a short drive away from downtown Calgary.
EDMONTON
(Square Feet Photography / Wendy Hamel, Re/Max River City)
Type: House
Price: $399,900
Year Built: 2020
Property Size: 150.66 sq. m
Lot Size: 222.12 sq. m
Minimum annual income required: $81,950
Built in 2020, this two-storey home in Edmonton has three bedrooms and three bathrooms across more than 150 square metres of space. Recent upgrades include new quartz countertops and vinyl plank flooring throughout. The main level offers access to the garage, and on the upper level, the primary bedroom leads to a five-piece bathroom with two sinks and a soaker tub.
WINNIPEG
(Eric Curt Peters, UnReel Creative / Jesse Carlson, Royal LePage Prime Real Estate)
Type: House
Price: $349,900
Year Built: 1911
Property Size: 104.05 sq. m
Lot Size: 457.18 sq. m
Minimum annual income required: $75,650
In addition to three bedrooms and two bathrooms, this Winnipeg home also includes a kitchen as well as dining, living and family rooms on the main level. In the finished basement is space for a recreation room or home office. Outside the home, the backyard is fully fenced and a detached garage has room for two cars.
TORONTO
(Hagop Anjrkouchian, Koush Media / Russell Willer, Willer Real Estate Group, Royal LePage Signature Realty)
Type: Apartment
Price: $1,100,000
Year Built: 2018
Property Size: 71.91 sq. m
Lot Size: N/A
Minimum annual income required: $217,000
Located in Toronto’s Annex neighbourhood, this one-bedroom, one-bathroom apartment also features a den that can double as a home office. Hardwood floors run throughout the unit, which also features a balcony with access from the living room and bedroom. Building amenities include rooftop gardens and the unit is situated near parks, schools and public transit.
OTTAWA
(InsideOut Media / Irina Popova, The Agency Ottawa)
Type: Apartment
Price: $699,900
Year Built: 2012
Property Size: 92.9 sq. m
Lot Size: N/A
Minimum annual income required: $127,350
This two-bedroom, two-bathroom corner unit is approximately 93 square metres and located southeast of Ottawa’s downtown core. Attached to the main bedroom is a walk-in closet with custom built-ins, while the main bathroom has a walk-in glass shower. Building amenities include a fitness centre and courtyard.
HAMILTON
(Will Stewart / Paulo Ribeiro, Re/Max Real Estate Centre)
Type: House
Price: $899,999
Year Built: 1935
Property Size: 161.37 sq. m
Lot Size: under 0.2 hectares
Minimum annual income required: $165,940
Originally built in 1935, this single-detached home in Hamilton has since been updated with a new kitchen, staircases and flooring. Three bedrooms and three bathrooms are situated across more than 160 square metres of space. In the basement is space for a recreation room and in the backyard is a concrete patio overlooking Hamilton Harbour and Pier 4 Park.
This corner apartment in Montreal includes two bedrooms and two bathrooms. Large floor-to-ceiling windows run throughout the unit, allowing sunlight into the combined living, dining and kitchen area, as well as the main bedroom. Located near the Old Port, this apartment unit is also situated near restaurants, shops, and other amenities.
In this 96-square-metre apartment unit are two bedrooms and two bathrooms. Throughout most of the unit are new vinyl floors, and the kitchen has been upgraded to include new tile flooring, cabinetry and quartz countertops. The apartment overlooks Nova Scotia’s Long Lake Provincial Park and is a short drive away from downtown Halifax.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
(ONIKON Creative / Pouria Sadeghi, eXp Realty)
(Matt Lawson, All In One Real Estate Photography / Veronica Crha, Re/Max Camosun – Oak Bay)
(Dylan Hunt, Calgary Photos / Wendy Niefer, Re/Max Realty Professionals)
(Square Feet Photography / Wendy Hamel, Re/Max River City)
(Eric Curt Peters, UnReel Creative / Jesse Carlson, Royal LePage Prime Real Estate)
(Hagop Anjrkouchian, Koush Media / Russell Willer, Willer Real Estate Group, Royal LePage Signature Realty)
(InsideOut Media / Irina Popova, The Agency Ottawa)
(Will Stewart / Paulo Ribeiro, Re/Max Real Estate Centre)
(Corey Kaminski, MTL Interiors / LJ Aguinaga, LJ Realties-LJ Immobilier)
(Sean McMullen / Jake Hubbard, Viewpoint Realty Services)
