Ready to hunt for your first home? If you’re open to relocating, this new list of the most affordable cities for first-time homebuyers in Canada is just what you need.
Real estate experts at Edmonton Homes analyzed 25 of Canada’s most populated cities and then ranked them for their housing affordability based on three metrics.
These metrics are the average annual income compared to house prices, property tax, and electricity bills.
From there, each city was given an overall score out of 70 points. Cities with the greatest amount of points are considered the most affordable for first-time buyers.
Out of 10 cities, only two in Ontario made the cut — and just barely, sliding into 9th and 10th place.
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Ottawa landed in 9th place with an affordability score of 36. Ottawa’s median annual income of $121,790 equates to 19.8% of the average house price, 4.39% of the property tax, and 1.28% of the annual electricity bill.
In 10th place is London, Ontario with an overall score of 28.3. The median annual income in London equals 16.07% of house prices, 7.18% of property taxes, and 7.18% for year-round electricity.
These may seem like pretty affordable options for homeowners. That is until you compare them to Canada’s number one city for first-time buyers, which is St. John’s, Newfoundland and Labrador.
St. John’s has an overall score of 58.8 points. On the median annual salary, residents can afford 37.31% of the average house price, which is around $500,000.
Below are the top 10 most affordable cities for first-time homebuyers in Canada:
- St. John’s
- Regina
- Saskatoon
- Quebec City
- Edmonton
- Winnipeg
- Calgary
- Montreal
- Ottawa
- London
So, there you have it. Now that you know where to look, it’s time to start shopping around for that dream house!
