It might be challenging to find a home on a single salary because of rising prices and diminishing inventory. If you put your sights on the more affordable flat market, though, and you know where to seek, the difficult work becomes infinitely simpler.
The most and least cheap Canadian markets for buyers of studio apartments on a single salary are being compared in a recent analysis by Zoocasa.
Using March 2023 benchmark prices from the Canadian Real Estate Association (CREA), Zoocasa calculated the minimum down payment required for an apartment in 15 cities across Canada.
The real estate agency then compared the results with the median after-tax income for single-person households, which was sourced from Statistics Canada, and calculated how many months it would take to save for a downpayment in each city if such a buyer saved 100% of their income.
Of the 15 markets analyzed, the five most affordable for single-income apartment buyers are located in the prairie provinces. Meanwhile, the five least affordable are found in British Columbia and Ontario.
With a benchmark apartment price of $183,100 and a median after-tax income of $42,800, Edmonton was deemed the most affordable city for single-income buyers. It would take just 2.6 months to save the $9,155 required for a minimum down payment in Alberta’s capital city.
Regina followed, with single-income buyers, who make $42,400, needing to save for 2.9 months to afford the $10,410 down payment required for a benchmark apartment, which cost $208,200.
Single-income purchasers in Saskatoon would need to save $11,275 for a down payment on a benchmark apartment, which costs $225,500, for 3.4 months with a $40K median salary.
In comparison, purchasers in Vancouver and Toronto on a single income must put money down for more than a year in order to finance the down payment on a standard apartment.
In Vancouver, where the average flat costs $737,400, there is a down payment requirement of at least $48,740. The median salary for a single household is $42K, so purchasers would need to save for 13.9 months.
Buyers in Toronto who earn a single income of $41,200 must put aside money for 13.2 months in order to finance the minimum down payment of $45,370 needed for the benchmark flat, which is priced at $703,700.
With buyers needing to save for 9.2, 9 and 8.3 months, respectively, to acquire a benchmark flat, Victoria, Fraser Valley and Hamilton round out the list of the five least affordable cities.
A single-income buyer would need to save 9.1 months' worth of their whole after-tax income to be able to afford the required down payment for a benchmark apartment.
