The last two years have been difficult for homebuyers. The market saw an overall 30% increase in home prices during the first few months of the pandemic, which eventually led to a national median price that was almost twice the median in the United States. Today, homes throughout Canada are selling at record prices.
While a $200,000 home is considered an “affordable listing,” they are few and far between – about 10% of all homes for sale in Canada are listed under $200K and not many of them are located in major cities.
In fact, houses under $200,000 account for less than 1% of listings in Canada’s 50 largest and most expensive cities. Surprisingly, prospective homeowners are most likely to find an affordable home within highly populated cities, according to Point2 analysts:
“Homebuyers who are willing to expand their house-hunting grounds to the largest cities in The Prairies, Atlantic Canada or Québec can have their pick of broader concentrations of more affordable listings,” states Point2.
Additionally, Point2 found the following information to be true:
- 38 of Canada’s 50 largest, most expensive cities — which, incidentally, are all in Ontario and British Columbia — showcase zero listings for less than $200,000.
- Kawartha Lakes, ON is the only larger city where more than 1% of all homes for sale are less than $200K.
- Among the largest cities at the regional level, Cape Breton, NS, in Atlantic Canada boasts the highest share of homes for sale under $200K: 44%.
- Populous cities across The Prairies have the most homes for sale under 200K, particularly Edmonton, AB (1,300), and Regina, SK (400).
Affordable Homes in Ontario and British Columbia
Those who want to buy an affordable home in Ontario or British Columbia are in luck: only 12 cities have homes listed for less than $200K and they are all in Ontario and BC, but none in Toronto or Vancouver.
Kawartha Lakes presents as the city with the most affordable homes. About 5% of the houses for sale in Kawartha Lake are listed under $200,000. The likelihood of finding a home for sale for less than $200k anywhere else is difficult. In the second and third-ranking cities, Kelowna and Surry, only 96% and 46%, respectively, of listed homes are considered to be “affordable.”
It is even more unlikely for buyers to find a home under $200,000 in Welland, ON or Richmond Hill, ON. The median listing price in both cities is nearly twice the national average, which is over $600,000.
Homes Under $200k in Atlantic Canada and The Prairies
People looking to buy a home in Canada for under $200,000 will have the most luck in Regina, SK, where over 36% of homes are affordable. Additionally, more than 22% of listings in Lethbridge, AB, Edmonton, EB, Saskatoon, SK, Winnipeg, MB, and Red Deer, AB come in under $200,000.
Final Thoughts
While it is difficult to buy an affordable home in a nation where fewer than 10% of listings are for sale for under $200,000, it isn’t impossible. However, prospective home buyers may have to compromise on their ideal location to find a home within their budget.
