Housing Markets in Vancouver and Toronto Exceed New York City in Cost
According to a new report by Zoocasa, many of the largest cities in the United States, including New York City, offer more affordable housing options compared to Toronto or Vancouver.
The report highlighted that cities like Chicago, Dallas, Miami, Nashville, Phoenix, Philadelphia, and Seattle were all more affordable than their Canadian counterparts, despite the challenges of rising interest rates and low inventory in both countries.
One of the factors contributing to the affordability gap is the difference in median incomes between the two countries. The report noted that the median household income in the U.S. was $75,149 in 2021, while in Canada it was CA$73,000, which translates to approximately $54,074 in U.S. dollars.
Despite earning less on average, Canadians end up paying significantly more for housing, with at least a $30,000 difference compared to their American counterparts.
Zoocasa’s analysis of average home prices, median incomes, and affordability across 40 cities in North America revealed that several Canadian cities ranked high on the unaffordability list.
Vancouver was named the most expensive real estate market in Canada and ranked third in North America. Despite being less expensive than cities like San Francisco and San Diego, Vancouver had a much lower median income, making it harder for households to afford homes in the city.
Toronto, on the other hand, had a median income similar to Dallas, Texas, but the median home price in Toronto was significantly higher, making it less affordable for homebuyers.
The affordability trend was not limited to Toronto alone, as other Canadian cities like Kitchener-Waterloo, Hamilton-Burlington, Ottawa, Montreal, and Halifax-Dartmouth also faced challenges with housing affordability.
On a positive note, the report found that average income earners in cities like Calgary, Winnipeg, Edmonton, Saskatoon, and Saint John could afford the current median home prices in their respective cities.
