A new joint study pinpoints some financially challenging cities
A new joint study by MoneySense and Zoocasa has highlighted the most financially challenging Canadian markets for prospective home buyers.
“As the pandemic has made homeownership more important than ever, it has driven new trends in home buying psychology,” said Lauren Haw, CEO and broker of record at Zoocasa Realty. “More buyers are looking to upsize their homes and are looking to markets where it’s most affordable to do so.”
The drastic shifts in Canadians’ working arrangements over the past year or so played a major role in these market dynamics, Haw noted.
“The ability to work from home has untethered many from living near business centres, and has offered buyers the flexibility to relocate to markets they may not have previously considered,” Haw said.
Read more: RBC Economics on the state of Canada’s housing affordability
Victoria was the fifth lowest market in terms of overall value for would-be buyers, with prices averaging at $718,508 in 2020 and growing by 26% ($148,808) in three years.
Mississauga ranked fourth least affordable in the study, with an average 2020 home price of $922,750 and a three-year growth rate of 25% ($186,650).
Toronto came in at third, with an average 2020 home price of $915,001 and a three-year growth rate of 14% ($109,294).
Prospective buyers will fare even worse at Oakville-Milton, which had a $1.116 million average home price last year along with a 14% ($132,775) three-year pace of growth.
Vancouver was deemed the most unaffordable market in Canada, with an average 2020 home price of approximately $1.057 million despite a three-year growth rate of just 3% ($35,055).
