Here’s the income bracket you need to be in to afford a home in Toronto right now

Toronto’s real estate market has for months been characterized by the complete opposite of what has defined it historically, with unusually high inventory levels, desperate sellers, easier price negotiations and, above all, lower mortgage rates .

These factors combined to ultimately make area housing somewhat more affordable, although asking prices didn’t fall as much as residents hoped.

Even month to month, the amount you need to cover a mortgage and other costs on a typical home is decreasing, not just in the Greater Toronto Area, but across the country.

Toronto has so many condos for sale it’s becoming a buyer’s markethttps://t.co/WIu1RQWzPv

– blogTO (@blogTO) October 10, 2024

The latest data from Ratehub.ca, which evaluates each month the salary required to afford a house or condo in the main Canadian hubs, shows that this figure decreased by the thousands in certain cities between September and October 2024.

In Toronto, the second most expensive place for real estate in the country, these declines were among the largest.

“Interest rates continued to decline month over month, signifying improved affordability this month,” the company wrote in a statement Wednesday. “Twelve of the 13 cities we studied experienced a decline in the income needed to purchase a home.”

Of these cities, Vancouver saw the largest change in income needed for a home in terms of dollar amount, while Hamilton saw the largest reduction, on a percentage basis.

In British Columbia’s capital, the average house price fell by $7,700 (to a still ridiculous $1,172,000) over a month, lowering the annual income needed to float such a purchase by 4 $540 (now $214,460) at current mortgage rates and stress tests, which were lower in October than September.

In Toronto, the average cost of owning a home fell by $7,700 (to a whopping $1,060,200), meaning a household now has to raise $4,380 less per year (a total of $195,420) to finance one.

How the salary needed to afford a standard home in various metropolitan areas across Canada has changed over the past two months. Chart from Ratehub.ca

If you want something somewhat affordable within the tragically overpriced confines of Canada, your only hope seems to be somewhere like Regina, where the cost of a typical registration and the salary needed to pay for it may have fallen by just $200 and $840, respectively, during the same period. last two months, but where a house only costs around $320,900 (which can be repaid at current rates with $69,520 per year).

Fredericton, St. John’s and Winnipeg are also quite inexpensive, with homes costing between $328,100 and $365,500, guaranteeing annual incomes of $70,750 to $76,400.

Ratehub offers some hope by highlighting the fact that interest rates are expected to fall even further in the near future, which should help offset a shift in demand that many experts believe is already beginning.