Affordability in Toronto has diminished rapidly in the last few years. In spite of some price drops in 2023 in response to interest rate hikes, the home price in the city still sits at over $1,000,000. The average home price across Toronto and the Greater Toronto Area (GTA) combined is $1,082,496.

As the cost in Toronto continues to climb, those earning the median income may find themselves priced out of more local markets. As home prices have escalated, wages haven’t increased at the same rate. So while there may be demand for homes, the overall buyer sentiment right now is that it’s simply too expensive to get into the market.

To find out what those earning the median income can afford, Zoocasa analyzed median incomes in major markets across the GTA and calculated the maximum affordability and compared it to average home prices.

Affordability Tightens Across GTA

Caledon has the largest median household income in the GTA at $113,000. This means that Caledon median-income earners can expect to afford a home of around $523,555. This is just over $814,000 shy of the average cost of a home in the city, showing the lack of affordability. Worth noting in Caledon is that the average price of condo apartments is over $1,400,000, but there was only one recorded condo sale in August. In the city with the second highest median income, Oakville, earners can expect to afford a home of around $499,239 – nearly $1,000,000 less than the cost of the average home in the city of $1,492,687.

Even in the most affordable cities in the region, median-income earners are having a tough time. The most affordable city on our list is Oshawa, where the average home will cost $815,098. Median-income earners there can afford a home at $351,298, putting the average-priced home around $460,000 out of reach. The second most affordable city, Essa, has an average price of $828,074, while the median income lends to an affordability of  $429,901. While not as bad as Oshawa, it’s still a difference of around $400,000. 

There is one area on our list where median-income earners can afford to buy. Those in Uxbridge earning the median income of $99,000 can afford to buy a home at the price of $457,636, which is more than required to buy a condo in the city. The average price of a condo in Uxbridge currently sits at $434,500, meaning median-income earners are $23,000 in the green if they’re looking to buy one. It’s the only property type that earners can afford to buy in all the cities we covered.

Zoocasa(Daniel Crook, September 28, 2023)