With the cost of living on the rise, new research pinpoints Canada’s most affordable cities for first-time homeowners. St. John’s, Newfoundland and Labrador, clinches the title, with a score of 58.8 out of 70.
The study, from Edmonton Homes, ranked the 25 most populated cities in the country across three metrics: average annual income compared to house prices, property tax and electricity bills to reveal the most affordable cities for first-time homeowners.
The average homeowners’ salary of $104,630 in St. John’s forms 7.31 per cent of the average house prices in the city. Property tax sets them back by $3,650 for a $500,000 house, a 3.49 per cent hit into residents’ median salary. Homeowners are set to pay an annual electricity bill of $1,656, equating to 1.58 per cent of the average yearly income.
Second on the list is Regina, scoring 56.6 points. Of the city’s $106,340 median salary, 2.04 per cent is spent on electricity bills. The wage equates to 37.40 per cent of the average house price, which stands at $284,334. Tax on properties costing around $500,0000 will take 5.05 per cent of homeowners’ average salary.
Saskatoon takes third place with an affordability score of 56.1 points. The city’s electricity bills claim 2.11 per cent of its residents’ median income. With an average housing price of $279,800, the homeowners’ annual income of $102,830 equates to 36.75 per cent of it. Property taxes for homes around $500,000 are set to swallow 4.21 per cent of a homeowner’s annual income.
Quebec City follows with an affordability score of 52.2 out of 70. Average house prices in the city are $357,754, with a homeowner’s income, which is an average of $104,860, equating to 29.31 per cent of the cost. Property tax will set a homeowner back by $4,389, for a $500,000 home, about 4.19 per cent of their annual salary. The city’s electricity rate is the most favourable in the country, with the new homeowner contributing 0.84 per cent of the average salary to annual bills.
Edmonton rounds out the top five with a score of 46.4. The median annual income of $107,450 constitutes 29.04 per cent of house prices, which average $370,068. The city’s property tax costs 4.04 per cent of the median income. With an average annual electricity bill of $2,004, residents spend 1.87 per cent of their income.
With an affordability score of 46.1, Winnipeg is the sixth most-affordable city for first-time homeowners. About 1.24 per cent of a homeowner’s salary is spent on electricity bills, and $6,244 is the property tax one pays for a building within the $500,000 price range. This makes up 6.53 per cent of the average salary. When compared to the city’s average house price of $341,703, the median salary of $95,660 is 28 per cent of the cost.
Calgary took seventh place, with a 37.5 affordability score. The average home price is $511,944, and the city’s average yearly income is $109,520, equal to 21.39 per cent. Meanwhile, 2.9 per cent of the income is spent on property tax for a $500,000 house. Montreal is in eighth with 36.6 points.Of the city’s average income, 0.91 per cent is spent on electricity, with the average house price at $529,020.
At the bottom of the list is Ottawa, with an affordability score of 36 and an average house price of $612,661, as well as London, Ontario, with a 28.3 score and an average house price of $585,252.
