Torontonians need to earn nearly $600,000 on average annually in order to afford a 1,500 sq. ft. home, according to a new report.
Insurance comparison website HelloSafe Canada recently released a study that says Ontario residents would need a gross household income of about $175,490 on average to buy a 1,500 sq. ft. home in the province.
Toronto tops the list of the most expensive places to buy in the province, where on average you will need to earn at least $591,828 to purchase a 1,500 sq. ft. house.
In addition, there are three other Ontario cities (all in the GTA) where prospective homeowners will need to make over $500,000 to afford a home of that size: Halton Hills, Aurora, and Richmond Hill.
Across the province, Timmins requires the lowest gross salary to purchase a 1,500 sq. ft. home with an average annual income of $64,896.
Looking at the price per sq. ft., people in Toronto can expect to pay $1,400 per sq. ft. in a 1,500 sq. ft. home, while it costs $1,370 per sq. ft. in Halton Hills, and $1,259 in Aurora.
On the other hand, those in Timmins will pay $203 per sq. ft., compared to $299 in Sault Ste Marie, and $372 in Chatham.
This data comes at a time when people are already frustrated with the soaring cost of housing, both for renters and buyers provincewide.
While numbers for this year have not been released, in 2021 average after-tax income of Canadian families and single people was just $68,400, according to Statistics Canada.
HelloSafe collected June 2023 home prices from Viewhomes.ca and Get Home Realty websites. It determined its findings based on the assumption of an Ontario mortgage loan with a personal contribution between five percent and 20 per cent, at a fixed rate for five years of 4.89 per cent, over a 25-year period, with a debt-to-income ratio of 36 per cent of disposable net income.