Income required to buy a home in Canada

[Allan]

Interesting article here on the income necessary to buy a home in major Canadian cities. Prices are down but still very high in many cities. The required income ranges from $76,220 (Winnipeg) to $223,850 (Vancouver). Toronto is $213,950.

I assume Vancouver and Toronto prices include nearby communities as they are also affluent. Winnipeg's nearby communities are cow pastures so prices are probably better.

 

[RetiredUSN]

When interest rates climb.....the sellers bite the bullet. (hence the down)

Inflation is affecting the cost of everyday necessities and that is what is killing off potential home buyers at the moment regardless of current property prices and rates.

First time home buyers need to sense some predictability............. and we are not in that place at this time.

 

[Gateman_Wen]

When interest rates climb.....the sellers bite the bullet. (hence the down)

Inflation is affecting the cost of everyday necessities and that is what is killing off potential home buyers at the moment regardless of current property prices and rates.

First time home buyers need to sense some predictability............. and we are not in that place at this time.

Pffft.

What's killing the housing market is 4 br 2 bath ranch homes in Wichita KS selling for $300,000.00+.

 

[Carjosse]

Interesting article here on the income necessary to buy a home in major Canadian cities. Prices are down but still very high in many cities. The required income ranges from $76,220 (Winnipeg) to $223,850 (Vancouver). Toronto is $213,950.

I assume Vancouver and Toronto prices include nearby communities as they are also affluent. Winnipeg's nearby communities are cow pastures so prices are probably better.

It is insane and governments are doing nothing to help new generations buy homes meanwhile you have older people and the rich buying multiple homes and jacking up rents.

When I see articles about people being forced to sell their second or third homes because of the increasing rates or trade in their luxury sports car for a slightly less fancy sports car, I say good. The articles are written like we should feel bad for these people.

 

[stevecanuck]

governments are doing nothing to help new generations buy homes

This sort of statement really highlights the difference between what people expect of government now as opposed to 'back in the day'. When we were first-time home buyers in the mid 70's NOBODY even dreamed of getting help from the government. Buying a house was YOUR responsibility, not the taxpayers. We sacrificed my wife's income because she wanted to be at home as our babies came along. It was just what you did. Pay your own damned bills, folks.

 

[Carjosse]

This sort of statement really highlights the difference between what people expect of government now as opposed to 'back in the day'. When we were first-time home buyers in the mid 70's NOBODY even dreamed of getting help from the government. Buying a house was YOUR responsibility, not the taxpayers. We sacrificed my wife's income because she wanted to be at home as our babies came along. It was just what you did. Pay your own damned bills, folks.

So what exactly is your plan for increasing housing affordability then? You think the status quo is fine? Homes are many times more expensive than they were in the 1970s. Your comment reeks of "I have mine so **** you".

 

[Allan]

So what exactly is your plan for increasing housing affordability then?

What is yours? What is the government supposed to do?

 

[stevecanuck]

So what exactly is your plan for increasing housing affordability then? You think the status quo is fine? Homes are many times more expensive than they were in the 1970s. Your comment reeks of "I have mine so **** you".

See Allan’s reply.

 

[Fearandloathing]

Interesting article here on the income necessary to buy a home in major Canadian cities. Prices are down but still very high in many cities. The required income ranges from $76,220 (Winnipeg) to $223,850 (Vancouver). Toronto is $213,950.

I assume Vancouver and Toronto prices include nearby communities as they are also affluent. Winnipeg's nearby communities are cow pastures so prices are probably better.

If you can find an efficiency suite in a condo for just $223,850 let me know! Fast! It would be on the ground floor facing a neighbor's wall and a two hour commute to downtown.

I suspect that is a price for an 'average' starter home in the 'Greater Vancouver Area" which would mean commuting two to three hours a day.

Don't come here.

 

[Fearandloathing]

It is insane and governments are doing nothing to help new generations buy homes meanwhile you have older people and the rich buying multiple homes and jacking up rents.

When I see articles about people being forced to sell their second or third homes because of the increasing rates or trade in their luxury sports car for a slightly less fancy sports car, I say good. The articles are written like we should feel bad for these people.

Not True.

There are several initiatives in Vancouver aimed at the basic get them shelter to co-operatives in large numbers. The provincial government has shot itself in the foot, and have a huge 3 acre site cleared ten years ago just sitting there. But leftists like the NDP have no business sense and have dropped the ball in several areas.

It's Ok, they'll be gone soon\.

 

[Allan]

If you can find an efficiency suite in a condo for just $223,850 let me know! Fast! It would be on the ground floor facing a neighbor's wall and a two hour commute to downtown.

I suspect that is a price for an 'average' starter home in the 'Greater Vancouver Area" which would mean commuting two to three hours a day.

Don't come here.

That $223,850 isn't the house price, it's the income needed to buy it.

If you go to the article house prices in those cities are listed in the left hand columns.

 

[Carjosse]

What is yours? What is the government supposed to do?

See Allan’s reply.

The federal government can: implement their ban of foreign purchases, institute a federal vacancy tax on homes, create an affordable housing program with the provinces to encourage and build affordable homes for first-time buyers, create a loan program for first-time home buyers with preferential rates.

Provincially provinces need to: Overhaul zoning and urban planning to allow for more denser housing (3-4 stories) in places currently zoned for single-family housing, good transit planning in those areas, a provincial vacancy tax, get rid of NIMBY regulations like Toronto banning multiple front doors, speculation tax, flipping tax, and a ban on second homes within certain regions.

Basically decomodify homes and encourage new affordable housing to be built.

 

[Carjosse]

Not True.

There are several initiatives in Vancouver aimed at the basic get them shelter to co-operatives in large numbers. The provincial government has shot itself in the foot, and have a huge 3 acre site cleared ten years ago just sitting there. But leftists like the NDP have no business sense and have dropped the ball in several areas.

It's Ok, they'll be gone soon\.

At least the BC NDP in putting in a little effort rather than throwing even more gas on the fire or doing literally nothing like other provinces.

 

[Allan]

create a loan program for first-time home buyers with preferential rates.

Not bad ideas except for the one above. Remember the sub-prime disaster?

 

[Carjosse]

Not bad ideas except for the one above. Remember the sub-prime disaster?

I don't see the danger when you can control exactly who the loans are being given out to and will become an increasingly smaller portion of loans as house prices become more affordable. They will still have to be able capable of having a perfectly solvent mortgage, just these days even people with above average salaries cannot afford an average home.

 

[Surrealistik]

It is insane and governments are doing nothing to help new generations buy homes meanwhile you have older people and the rich buying multiple homes and jacking up rents.

When I see articles about people being forced to sell their second or third homes because of the increasing rates or trade in their luxury sports car for a slightly less fancy sports car, I say good. The articles are written like we should feel bad for these people.

Don't forget AirBnB which makes the rental market so much worse.

 

[Surrealistik]

What is yours? What is the government supposed to do?

1. Appropriately tax AirBnB, and otherwise pass similar legislation financially penalizing and discouraging short term leases which have had a terrible inflationary impact on rental prices by reducing unit supply.

2. Apply especial taxes to vacant properties on a phase in basis.

3. Apply especial and frankly even punitive taxes to rental and investment residential properties on a phase in basis. I'm sorry, we should not have deep pocketed investment companies and even small time landlords buying up multiple homes or whole neighbourhoods (and thus rampantly driving up prices) for the sake of securing income streams.

4. Ban foreign buyers, or tax the absolute bejeezus out of them on a phase in basis.

5. Work with municipal and provincial governments on a coordinated basis to densify and responsibly rezone. Beyond perhaps making cheaper construction financing available to homebuilders which would lower the considerable financial barriers (including paying current residents/owners of low density housing a premium to acquire their lots), I honestly don't think developers need more incentives to build since the demand is obviously there; they just need places to do it.

6. Government subsidized low interest rate mortgages for first time home buyers only who can demonstrate their capability to service their mortgage (we're not talking subprimes where little to no effort is undertaken to determine suitability).