No one but those perched atop the income ladder can afford to buy a home in Toronto and Vancouver, a new study confirms. For first-time homebuyers hoping to buy an average house with an average wage, the Prairies are a much better place to be, data compiled by real-estate search site Zoocasa.
And yet, Canada’s most expensive real-estate markets aren’t hemorrhaging young blood at the rate you’d think given their obscene home prices, according to a different report.
“For every millennial leaving a major Canadian city for more affordable digs in the same province, there are between seven and 12 millennials moving in from another country or province,” writes RBC economist Robert Hogue.
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That’s hard to believe when you look at Zoocasa’s numbers. In Vancouver, you’d need to be making at least $205,500 to qualify for a mortgage for a middle-of-the-road house worth $1.4 million. In other words, you’d need to be in the top 2.5 per cent of the income distribution to buy an average home.
In Toronto, you had better be making $125,000 — in the top 10 per cent of local incomes — if you want to purchase the typical home, now available for an eye-watering $873,000.