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More than $220K income needed to buy a home in Toronto, Vancouver: analysis

The housing market was hot even before the COVID-19 pandemic hit, with prices leaving many wanting to purchase a home frustrated, but in the last few years that difficulty has soared as prices skyrocketed. In part three of Global News' "Sticker Shock" series, Anne Gaviola looks at the impact of housing inflation and how it's keeping many prospective buyers on the sidelines – May 26, 2022

You’ll need to be making more than $220,000 to buy a home in Toronto and Vancouver with a 20 per cent down payment, according to new housing affordability data from Ratehub.ca.

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While home prices have been going down in cities like Toronto, Vancouver, Winnipeg, Ottawa and Hamilton, the income required to purchase a home in these markets still remains higher due to stress test rates and rising mortgage rates.

Ratehub.ca says it used March 2022 and June 2022 real estate data to make the calculations.

Homebuyers in Toronto need to earn an extra $15,750, or seven per cent more, compared with March, with those in Vancouver needing to make $31,730, or 16 per cent, more.

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Across all Canadian cities, the annual income needed to buy a home has jumped by $18,000 on average in just the last four months.

Victoria, B.C. saw the biggest increase in June compared to March, with $35,760 or 23 per cent in additional income required.

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