According to a Ratehub study, a Montrealer needs to earn more than $100,000 per year if they want to buy a property (with a 20% down payment).
As of September 2023, the average price of housing in Montreal was $518,600, according to Ratehub, and to buy this type of property, a Montrealer needs to earn $116,220 per year.
The data released Monday morning is based on a mortgage with a 20% down payment, a 25-year amortization, an annual property tax of $4,000 and monthly heating of $150.
Five other Canadian cities require a gross annual salary between $100,000 and $200,000 to provide housing: Halifax ($117,050), Calgary ($123,000), Ottawa ($140,650), Hamilton ($181,800 ) and Victoria ($187,900).
In Vancouver and Toronto, residents must earn $250,000 and $235,000, respectively, to buy the same property. Conversely, Winnipeg and Edmonton are the two cities where home buying salaries are lowest in Canada ($81,860 and $87,850).
Higher wages required
While the average price of housing trended down between August and September 2023 in all ten cities studied by Ratehub (-$3,000 in Montreal, for example), the salary required to afford that apartment only increased . Increase between August 2023 and September 2023 (+$1,540 in Montreal).
In Vancouver, the increase in income needed to purchase a home was greatest ($3,900), even though the average home price fell by $5,100.
Toronto saw the biggest month-over-month housing price declines ($14,400). However, purchasing an average home in this city requires an additional income of $1800.
“The value of housing has fallen in the ten cities examined, while affordability has become increasingly poor. The August-September data highlights the impact of even a small rate hike on financial accessibility,” said Philippe Simard, Quebec mortgage director at Ratehub.ca.