Even as home prices surged across most major cities in Canada throughout 2024, accessibility to property has also shown slight improvement, according to Ratehub.ca's latest report. Nevertheless, the required income to secure home ownership remains beyond the reach for many. Among the thirteen key cities analyzed by the mortgage comparison service, the estimated minimum income necessary for purchasing property declined from January to December 2024.
This decline is attributed to lower mortgage rates spurred by central bank rate decreases since June 2024. While Montreal saw only marginal improvements, cities like Toronto experienced significantly greater changes. Conversely, some areas such as Fredericton faced steep price hikes, overshadowing any benefits from reduced mortgage rates. Overall, Philippe Simard, Quebec's mortgage director at Ratehub.ca, remarked, "We observed, in 2024, much improvement compared to 2023." Last year, conditions had worsened across the ten cities surveyed.
By December 2024, the average price for housing in Montreal reached $542,900, up by $26,800 from the start of the year. The required minimum income to purchase at this average price was evaluated at $108,400, witnessing a slight reduction of $1,100 from January. Compared to the previous year, the minimum income needed dropped by $3,250.
According to Statistics Canada, the median annual income after tax for families living in Quebec was $92,900, with slightly higher figures for Montreal households at $96,800. Meanwhile, individuals living alone had a median income of $38,300. With these numbers, the affordability of ownership continues to be elusive for many residents.
Other Canadian cities displayed various trends. For Toronto, the average home price was documented at $1,061,900—down by $3,400 over the year. The minimum income needed for such homes adjusted downwards to $197,800—a reduction of $12,400 since January. Vancouver also exhibited similar trends, with average prices reaching $1,171,500, marking a $4,700 yearly increase. The required minimum purchase income here is estimated at $216,700, reflecting a decrease of $12,100 since January.
Ottawa's housing market continued to climb, with average home prices reaching $645,800, up by $28,200 throughout 2024. The minimum income requirement declined slightly to $126,150. On the other hand, Fredericton has been grappling with the effects of heightened prices, climbing to $341,100—a staggering increase of $54,000 over the year. This led to an increased minimum required income of $73,640, rising by $6,130 from earlier periods.
Halifax experienced disruptions of its own, with the average home price at $533,500 after a rise of $11,100 within the year. The necessary income for purchasing was slightly adjusted down to $106,780. Calgary’s housing prices reached $572,400, with the income requirement falling minimally to $113,500.
Winnipeg's property market reported averages at $359,200, showing moderate growth of $23,600. Yet, the minimum income requirement saw minimal adjustments, reflecting slight fluctuations. St. John’s reported average home prices rising by $35,000, marking significant market activity.
The Canadian housing market as a whole shows the pernicious effects of rising costs, as families struggle to attain housing ownership amid fluctuated income levels. The median annual after-tax income for families nationwide is reported at $99,800, with individuals averaging $37,800. Potential buyers earning close to the national income median can find homes within reach in some markets; yet, many remain shut out of homeownership opportunities due to soaring prices.
The 2024 housing report starkly outlines the twin challenges of affordability amid rising prices across major Canadian cities, presenting urgent questions about homeownership access for future buyers.