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By comparison, Canada’s hottest markets are likely to remain unaffordable. As the study notes, Vancouver buyers require almost 75 per cent of gross household income to afford a median home. The figure is slightly lower in Toronto, 64 per cent, but still well above the national average.
“This means that those who can afford a home in these markets are not in the middle of income distribution,” Hogue says, adding this explains why multi-family homes — generally more inexpensive than single-detached homes — remain the top choice for most home buyers in Canada’s largest cities.
In Alberta, single-family detached homes continue to be the housing segment of choice because the two major cities are so affordable. That said, Edmonton is the lower cost option.
The study found Calgary residents require about 36 per cent of gross household income to afford the average home.
While income growth has not been as strong as other regions, unemployment has remained high from the pandemic and headwinds to growth in the oil patch.
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