If you're one of those people who complain that the housing market in Greater Sudbury is unaffordable, you may be shocked to learn this city is home to the second most affordable housing market in Ontario, according to a report from Zoocasa.com.
The real estate website says the average home price in Sudbury $272,523. The required income to purchase a home, with a 20-per-cent downpayment, is $37,174. The median household income is $68,736 (according to Statistics Canada).
Zoocasa calculated the required income to purchase the average home in 28 major markets across the province, assuming a 20-per-cent down payment is made at a mortgage rate of 3.14 per cent and a 30-year amortization. This amount was then compared to the actual median household income in each region, to determine whether local home buyers face an income gap or surplus when attempting to enter the market.
Greater Sudbury is second only to the city of Thunder Bay, which has an average home price of $227,750 with a required income of $31,067. The average household income in Thunder Bay is $66,163.
Ottawa is the third most affordable city in which to buy a home, says Zoocasa, with an average home price of $433,684 and an required income of $59,158. The average household income in Ottawa is $85,981.
In comparison, Richmond Hill has the least affordable housing market in the province. The average home price there is $999,311 with a required income of $136,315. However, the average household income is only $88,353.
Toronto falls in an No. 2 on the least affordable housing market in Ontario with an average house price of $785,223. The required income to purchase that home would be $107,111, but the average household income is listed at $65,829.
Much of Toronto’s second-place unaffordability is due to its more diverse mix of housing; condo sales made up 56 per cent of the transactions that occurred in August, in contrast to detached home sales taking the lion’s share in Richmond Hill, at 52 per cent, says Zoocasa.
A greater proportion of more expensive home types sold skews the average home price – and affordability gap – higher, to nearly the million-mark at $999,311.
To check out Zoocasa's full report, click here.
