This is how much renters need to buy a starter home in Mississauga
Published June 22, 2023 at 3:13 pm
Many renters don’t make enough to buy a home in Mississauga.
Young renters may want to look elsewhere to realize their homeownership dreams — Mississauga is one of 24 cities in Ontario where buying a home is out of reach for renters, according to a study from Point2Homes, a real estate company covering market trends.
In these 24 cities, renters earn 13 to 59 per cent less than the minimum income needed to comfortably cover the mortgage for a starter home, Point2Homes found.
And Mississauga is one of the top 12 particularly priced-out Ontario cities where renters earn about half the required amount.
In Mississauga, the average renter’s household income is just over $70,000 but the income needed to buy a home is $127,118 — a 45 per cent shortfall, according to the study.
Given the recent rise in housing prices, this shouldn’t be surprising.
Videos
Starter homes or entry-level homes used to hover around $200,000. But with the average price of all home types in Mississauga at $1,140,328 in May, it would be pretty tough to find a place in Mississauga under $300,000.
The study finds a starter home price in Mississauga is $536,950, and a $107,390 downpayment is needed.
But Mississauga isn’t the most unaffordable — renters in neighbouring Oakville have it much worse, falling 58 per cent short of achieving their homeownership dream.
So where can first-time buyers find a home?
Most people will have to move out of the city or even the province.
In 14 of Canada’s 50 largest cities, the renter household income is two per cent to 52 per cent higher than the minimum income needed to comfortably afford a starter home, the study found.
The top five most affordable cities for home buyers are Edmonton, St. John’s, N.L., Regina, Saguenay, and Trois-Rivières.
To learn more, see the full report from Point2Homes here.
insauga's Editorial Standards and Policies advertising