Two surprise as most affordable cities ranked
March 28, 2023
Victoria, affordable? | Tourism Victoria
St. John’s, New Brunswick, is, not surprisingly, Canada’s most affordable city for first-time homebuyers according to a new study, but the survey by digital real estate research hub Edmonton Homes (formed by Alberta real estate professionals) holds some surprises.
This research compared and ranked the 25 most populated cities in Canada across three metrics—average annual income compared to house prices, property tax, and electricity bills—to reveal the most affordable city for first-time homeowners.
St. John’s ranks first on the list with an affordability score of 58.8 points out of 70. The city’s homeowners' median salary of $104,630 comprises 37.31 per cent of the average house prices in the city. Property tax sets them back by $3,650 for a $500,000 house—a 3.49 per cent hit into residents’ median salary. Homeowners pay an annual electricity bill of $1,656 or 1.58 per cent of the average yearly income.
But the study also reveals that pricey Victoria and Vancouver are among Canada's most affordable cities for first-time homeowners.
Victoria is the 11th most affordable city with an affordability score of 27. Homeowners in the city will see their median annual income of $106,900 constitute 11.94 per cent of house prices; the average house price is $895,036. The city’s property tax costs 2.43 per cent of the median income. And with an average annual electricity bill of $1,512, residents spend 1.41 per cent of their income to light up their homes.
In 12th place is Vancouver, with a 26.7 affordability score. The average home price is $1,167,134, and the city’s median annual income is $98,640, equivalent to 8.45 per cent. Meanwhile, 1.25 per cent of the income is spent on property tax for a $500,000 house. In Vancouver, 1.53 per cent of the city’s median income is spent on electricity.