According to StatsCanada, the average household income in Canada is 66K. The average income of a single person household is 34K.
The average price of a home in Canada is now 816K, an almost 100% increase in 6 years.
Real estate is now part of Canada's top three “industries”, along with oil and gas, and mining.
Think you can buy a home if you just pull yourself up by your bootstraps?
If you use the CMHC “housing affordability” calculator for a 66K household with a 50K down payment and $1100/month non-housing related expenses, it says that household can afford a $292K house.
According to the housing affordability calculator, a household would need to earn 134K, have 100k downpayment, and no more than $1100/month in non-house related expenses to afford a $816K home.
According to StatsCanada, only 10% of Canadian households earn over 100K per year. That means that 90% of Canadians cannot afford an average Canadian home. Those without family wealth or access to wealthy co-signers have very limited options. Rent is also going up faster than income.
Stats were all taken from the public StatsCan website, the CREA website with mortgage estimates from the CMHC website.
Credit: Rhoneil Marie