Winnipeg one of the top five cities for single-income earners to afford a home

By Jeremy Davis

Fresh on the heels of another successful Market Insights event held on February 16, 2023, more evidence emerged on a message the Winnipeg Regional Real Estate Board has been consistently communicating for some time, that Winnipeg remains one of the most affordable real estate markets in Canada.

With a low cost of living, comparatively low municipal property taxes, low-cost power and a consistently affordable real estate market, Winnipeg’s value proposition continues to punch above its weight when attracting new residents to an affordable place to work, live and play.

Winnipeg is a diverse city that continues to grow, and in an ever-changing real estate market, affordability is top of mind for most buyers. As we all know, double-income buyers have increased opportunity to purchase an affordable home, so if a city is one of the most affordable for single-income buyers, it really speaks to the overall affordability of the market as a whole.

The below article written by Zoe Demarco fromSTOREYS, an online news platform for the Canadian real estate market, shows that Winnipeg is one of the most affordable Canadian cities for single-income buyers.

The Zoocasa report referenced in Demarco's article shows that the median income in Winnipeg is $50,400, while an income of $50,288 is required to afford an average benchmark home price of $323,400.

We thank STOREYS for allowing us to republish this interesting article for our readers.

The Most Affordable Canadian Cities for Single-Income Buyers

Home prices across Canada have fallen significantly since the spring of 2022, but amid strained inventory and high interest rates, purchasing property is still no easy feat.

Homeownership is a process made endlessly easier by familial support or a dual income, but it’s not completely impossible to go about it on your own — you just need to know where to look.

A new report from Zoocasa delves into whichCanadian markets are the most affordable for single-income buyers, and which property types are the most attainable.

Using December 2022 home prices from theCanadian Real Estate Association (CREA), and assuming a 20% down payment, a 4.74% mortgage rate, and a 30-year amortization period, Zoocasa calculated the minimum income required to afford an average priced home in more than a dozen cities and regions across the country.

The results were then compared to median income data for people living alone, which was sourced from Statistics Canada’s 2021 census.

Of the 18 areas analyzed, there were only five cities where a single person earning the median income could afford to buy the average home; Edmonton, Winnipeg, St. John’s, Regina, and Saint John.

With just $48,450 needed to purchase the average price of a home in Regina ($311,500), it was deemed the most affordable city for single-income buyers, who make a median salary of $58,000 in the provincial capital.

Saint John, New Brunswick, followed with a median income of $48,000 and just $40,613 required to purchase the average home at a price of $261,300.

While the east coast and the prairies are hospitable for single-income buyers, Canada’s priciest provinces remain out of reach.

More than $173,000 is required to purchase theaverage home in Vancouver, but the median salary in the city is just $56,400. The $168,150 needed to afford the average Toronto home is more than double the city’s median single-income salary of $62,000.

When broken down by property type, detached homes were almost entirely unattainable for single-income buyers. Only Saint John, where the average detached home costs $261,900, was within the realm of affordability.

Condominium apartments were the most affordable, with single-income buyers being able to purchase condos in seven cities, including Saskatoon (average condo price: $224,300) and Calgary ($286,200).

Affordable townhouses can be found in five cities, with Edmonton having the lowest average price at $229,300 — “well within” the affordability range allotted by the city’s median single-income of $59,600.

While the options may be limited, it’s entirely possible to afford a home on a single income in Canada.

— Davis is the Winnipeg Regional Real Estate Board’s Director External Relations & Market Intelligence.