Buying a home in Canada is substantially more costly than in the US according to study
Published April 8, 2024 at 1:00 pm
The housing market in North America has been treading water for what seems like forever. While prices continue to fluctuate, those in Canada find themselves peering over the fence to see if the grass is greener on the other side of the border. In a recent report by Zoocasa (a Canadian real estate organization), the chasm between Canadian and American housing prices was finally measured to the last detail.
Unsurprisingly, both countries have seen a substantial uptick in the cost of homes. However, the US has a leg up for affordable housing and household income.
The report also indicates that the price of a home in Canada in 2022 was, on average, $30,000 more than that in the US. Even more concerning is that this standard runs parallel to average household incomes in Canada, which is $20,000 less than the American standard.
To further understand the North American housing market, Zoocasa calculated the average cost of homes in 40 cities between Canada and the US, with median prices and household incomes used as the primary compass for the study.
Unsurprisingly, the West Coast of Canada and the US have the highest median prices for homes in North America, with San Fransico holding the top spot, as median-income households can scarcely afford the standard home cost of $600,000.
Additionally, Vancouver has one of the largest gaps between maximum affordable housing and standard income, with the general data indicating that Canadian homes are vastly more expensive than those found in the US — with Kitchener-Waterloo being used as a primary example.
Videos
In this area in Ontario, the average household income hovers around $60,000, the same as in Houston in the US. However, in Houston, people in this income bracket can afford a home well within the standard price range. As for Kitchener-Waterloo, there remains a massive $200,000-plus gap between maximum affordability and the median cost of a home, which is set at over $500,000.
However, not all is lost in the Canadian sphere of home ownership, as additional data points out that several Canadian cities have a substantial advantage in affordability, with those being Calgary, Saskatoon, Edmonton, Winnipeg and Saint John.
In these locations, median-income earners can purchase homes that ride the line of affordability.
While it may take a significant amount of time for the North American housing market to become friendly for home buyers, there at least appears to be a little ray of hope for some parts of Canada.
insauga's Editorial Standards and Policies advertising