Want to buy a house in Toronto? You’ll need to make at least $200,663
By: John Shmuel on August 17, 2017
Take home an average salary in Toronto? Good luck buying a home.
Real estate firm TheRedpin has calculated that you need to be making at least six figures or very close to it to be able to afford the average price for everything from a condo to a single-detached home in the city.
Of course, different types of housing require different incomes. Take a look at TheRedPin's breakdown below.
Condo
Annual income needed: $92,925
The average condo in the city costs, $511,112. At current interest rates, that’s a monthly payment of $1,933
Condo townhouse
Annual income needed: $104,720
The average condo townhouse costs $575,722, which means your monthly payments will come in at $2,176.
Freehold townhouse
Annual income needed: $131,400
Average prices for freehold townhouses have hit $734,029, meaning you’ll be shelling out $2,776 a month to afford one.
Semi-detached house
Annual income needed: $143,550
This year the cost for an average freehold townhouse has risen to $807,532. That means monthly payments cost $3,054.
Detached house
Annual income needed: $200,663
A detached house in Toronto averages $1.15 million. That means you’ll be paying $4,349 a month for your mortgage.
If these salaries shock you, it’s because the majority of people in Toronto aren’t anywhere close to earning that kind of money. According to Statistics Canada, the median annual income for a family in the Greater Toronto Area was $72,830 as of 2015.
Another report out Thursday found that many young people want to buy homes in Toronto, particularly single-detached homes, but that they expect they won’t be able to afford them because of sky-high prices.
The report from Royal LePage finds that 59% of aged 25 to 30 want to buy a detached home in Ontario in the next five years, but only one third believe they’ll be able to afford one.
