Buyers need incomes of at least $100,000 in 82% of Toronto markets

Buyers need incomes of at least $100,000 in 82% of Toronto markets

Buyers need incomes of at least $100,000 in 82% of Toronto markets

The 2.4% year-over-year increase in the average price of a GTA home (up to $807,871) has led to a noticeable shrinkage of affordability in a progressively greater number of markets in the region, according to a new analysis released late last week by real estate information portal Zoocasa.

The study found that per TREB numbers, 27 out of 33 markets in the GTA require a household income of at least $100,000 to afford the average home.

“Only three – Oshawa, Essa, and Clarington – fall within the affordability range of the median dual-or-more income earning household,” Zoocasa noted.

“Prices also continue to heat for condos which are rapidly losing their reputation as the only remaining affordable entry point to the market. With June averages coming in at a scathing $605,530, a household would need to earn $110,000 to own a home in the sky,” the report added.

Worse, no GTA housing market was affordable for a household on the single median income of $39,560. Zoocasa stated that this stressed the importance of dual (or more) incomes to offset the ever-growing cost of buying a home in one of the country’s most in-demand regions.

Read more: Pockets of affordability in Toronto’s bustling condo segment

In terms of housing cost and income required, these are the 5 most expensive GTA markets, according to the analysis:

Rank 1: King

  • Average Price - $1,403,162
  • Income required - $209,957

Rank 2: Oakville

  • Average Price - $1,074,250
  • Income required - $165,088

Rank 3: Richmond Hill

  • Average Price - $1,033,745
  • Income required - $159,567

Rank 4: Markham

  • Average Price - $974,626
  • Income required - $151,501

Rank 5: Toronto Central

  • Average Price - $966,088
  • Income required - $150,337

On the other hand, would-be home owners in the GTA can check out these areas of relative affordability:

Oshawa

  • Average Price - $515,261
  • Income required - $88,840

Essa

  • Average Price - $523,418
  • Income required - $89,953

Clarington

  • Average Price - $532,908
  • Income required - $91,247

Orangeville

  • Average Price - $560,735
  • Income required - $95,043

Brock

  • Average Price - $582,455
  • Income required - $98,006

 

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