How much should you earn to buy a 1,500 sq ft home in Ontario?
The province of Ontario is renowned for its attractive real estate market, with particular attention given to the city of Toronto. Recently, a new price record was set for a square foot in Toronto, at $1,400. In light of this significant development, our intention is to conduct a comprehensive analysis of this thriving real estate market.
Since Toronto is the city with the highest gross annual Salary needed to buy a 1,500 square foot house, we sought to investigate whether this trend extends to the neighboring cities within the Greater Toronto Area.
Good to know
Calculation Method: The square foot price data collected is valid for June 2023. Our calculation is based on the assumption of a mortgage loan taken out in Ontario with a personal contribution between 5% and 20%, at a fixed rate for 5 years of 4.89%, over a total period of 25 years, with a debt-to-income ratio of 36% of disposable net income.
$175,491: This is the average gross annual income required in Ontario to buy a 1,500 square foot house
Buying a house is an aspiration for many families in Ontario. But at what price is this dream available? That’s what we wanted to know, by estimating the gross annual salary required for a household to acquire a 1,500 square foot house in different regions of Ontario. It turns out that:
- Not surprisingly, in June 2023, it is in Toronto where you need to earn the most to afford a 1,500 square foot house: expect a gross annual income of $591,828 per household!
- 3 other cities also require a gross annual salary of over $500,000 for the acquisition of a 1,500 square foot house: Halton Hills, Aurora and Richmond Hill, all in the Greater Toronto Area.
Expert advice
Alexandre Desoutter, editor-in-chief for HelloSafe Canada
"Ontario's real estate market has reached unprecedented heights, with soaring prices that have left both experts and aspiring homeowners astounded. The combination of limited housing supply, growing demand fueled by population growth, and low interest rates has created a perfect storm, propelling property values to astronomical levels. This has resulted in a challenging landscape for buyers, particularly first-time purchasers, who face formidable barriers to entry. The high real estate prices in Ontario not only underscore the pressing need for innovative solutions to increase housing supply but also highlight the urgent necessity for comprehensive policies aimed at fostering affordability and equitable access to housing for all residents".
Timmins has the lowest gross annual salary to buy a 1,500 square foot house in Ontario
On the other side of the spectrum, away from the metropolis, we analyzed the lowest gross annual salaries required to buy a 1,500 square foot house in Ontario. To purchase a 1500 sq. ft. home in June 2023 in the City of Timmins, the household must have a gross annual salary of $64,896. With a gross annual salary of less than $100,000, you can also buy a 1500-square-foot home in Sault Ste Marie ($97,665).
The price per square foot is 7 times higher in Toronto than in Timmins in June 2023
Logically, the disparities in income required to buy a house between regions are strongly correlated with differences in square foot prices, which are high across Ontario. Thus, as of June 2023:
- The average price per square foot for a house in Toronto ($1,400) is 7 times higher than in Timmins ($203).
- The average price per square foot observed in June 2023 across all Ontario regions was $650.
June 2023 Prices per square foot in Ontario
For the month of June 2023, we have listed prices per square foot in Ontario cities from highest to lowest. The top of the ranking corresponds to cities concentrated in the Greater Toronto Area, and the further away from the metropolis, the lower the prices.
| City | Price per square foot (house for sale) | Gross annual salary required to buy a 1,500 square foot house |
|---|---|---|
| Toronto | $1,400 | $591,828 |
| Halton Hills | $1,370 | $570,154 |
| Aurora | $1,259 | $519,838 |
| Richmond Hill | $1,240 | $511,235 |
| Oakville | $1,018 | $410,719 |
| King | $980 | $393,512 |
| Mississauga | $977 | $392,154 |
| Vaughan | $928 | $369,968 |
| Burlington | $861 | $339,632 |
| Caledon | $848 | $333,746 |
| Markham | $818 | $320,161 |
| Uxbridge | $760 | $293,900 |
| Milton | $748 | $288,467 |
| Whitchurch-stouffville | $725 | $278,053 |
| Whitby | $677 | $256,319 |
| Scugog | $655 | $239,365 |
| Manitoulin Island | $651 | $237,596 |
| East Gwillimbury | $649 | $229,589 |
| NewMarket | $640 | $232,734 |
| Brampton | $637 | $224,415 |
| Guelph | $631 | $221,829 |
| Clarington | $621 | $224,333 |
| Pickering | $617 | $222,565 |
| Hamilton | $610 | $213,505 |
| Orillia | $605 | $211,533 |
| Stratford | $595 | $207,587 |
| Barrie | $590 | $205,616 |
| Kitchener | $587 | $204,431 |
| Georgina | $587 | $210,327 |
| Ajax | $572 | $198,258 |
| St. Catharines | $566 | $195,893 |
| Brantford | $554 | $191,159 |
| Peterborough | $543 | $186,819 |
| Kenora | $531 | $187,419 |
| Brock | $530 | $187,014 |
| Welland | $522 | $178,535 |
| Kingston | $508 | $173,012 |
| Sudbury | $500 | $169,856 |
| London | $492 | $166,700 |
| Ottawa | $490 | $165,910 |
| Woodstock | $473 | $159,205 |
| Hawkesbury | $472 | $163,551 |
| Windsor | $432 | $143,743 |
| Sarnia | $426 | $141,526 |
| Oshawa | $417 | $138,202 |
| Leamington | $414 | $137,094 |
| North Bay | $413 | $136,725 |
| Belleville | $392 | $128,967 |
| Cornwall | $385 | $126,382 |
| Chatham | $372 | $121,580 |
| Sault Ste Marie | $299 | $97,665 |
| Timmins | $203 | $64,896 |
Methodology
In addition to its expert editorial line around insurance and financial products, HelloSafe explores broader topics relating to global consumption in Canada and around the world. The aim is to decipher certain complex subjects for consumers and to provide everyone with the latest information. It is within this framework that HelloSafe regularly carries out studies on trends relating to current personal finance in Canada.
Reminder of the calculation method: the square foot price data collected is for June 2023 and is taken from Viewhomes.ca and Get Home Realty websites. Our calculation is based on the assumption of a mortgage loan taken out in Ontario with a personal contribution between 5% and 20%, at a fixed rate for 5 years of 4.89%, over a total period of 25 years, with a debt-to-income ratio of 36% of disposable net income.
About HelloSafe Canada
HelloSafe is a leading platform for comparing financial products (insurance, credit, investments) in Canada. Powered by its unique and powerful technology, HelloSafe provides users with dozens of free and anonymous comparison tools, calculators and expert, up-to-date content. Its platform empowers users to make the best decisions for their wallets and find the right products at the right prices for them.
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