Fully paying for a home in Canada’s largest markets is a decades-long project, according to a new study by real estate information portal Zoocasa.
The analysis found that Canadians with earnings at the median level of $70,336 before taxes will qualify for a mortgage of $280,703.
Assuming a savings rate of 20% of annual income, the shortfall of $346,697 means that these mid-income households will need, on average, around 25 years to save up for a home valued at the August benchmark of $627,400.
In Vancouver, a median-earning household ($72,662 before taxes) can qualify for a mortgage of only $241,994. With an average-priced home at $993,300, such households will need a staggering 52 years to make up for the shortfall.
Fraser Valley is another market where consumer-friendly prices appear to be an ever-distant dream. Median-income households in this region (earning $69,289) will qualify for a mortgage of $247,404. With an average home price of $823,300, they will need 42 years to save up for paying off the shortfall.
Greater Toronto has been renowned for both its status as a global destination and for its sheer lack of housing affordability. Featuring an average home price of $802,400, mid-income buyers who are somewhat more fortunate compared to the rest of the nation (earning $78,373) will still need 32 years to fully pay for their houses.