How Much Do You Need to Make to Buy a Home as a Single Person in Mississauga?
Valentine's Day may be over is, but that doesn’t change the fact that the infamous day of love prompted a real estate website to determine exactly how much a single person needs to make a afford a home on their own in Mississauga.
Short answer: It's not easy, but it's certainly not impossible.
"Valentine’s Day can be exasperating enough for the 'romantically uncoupled' - but those looking to make a solo venture in the Greater Toronto Area real estate market have all the more reason to detest Cupid this February, as it’s extra tough to buy a home alone," real estate website and brokerage Zoocasa says in a recent blog post.
Zoocasa says that, for someone earning the median single-person household income, owning a home in even the most affordable GTA housing markets requires more than double the recommended shelter cost.
To find out where single buyers are most likely to find single income-friendly abodes, Zoocasa calculated the home-price-to-income ratio in 17 markets tracked by the Toronto Real Estate Board, using the average January 2018 condo price and median income earned in each region.
As far as our city goes, Zoocasa says Mississauga is somewhere in the middle of best/worst places to be a single buyer, with a condo price to one-person median income ratio of 10. In Mississauga, the average condo price is $401,358 and the median income is $41,597.
In terms of methodology, Zoocasa says the home price to income ratio, calculated as price divided by income, is a basic affordability measure showing how many years of income it would take to pay for a property. A higher ratio indicates it takes longer to pay off a home.
Across the 17 GTA regions Zoocasa analyzed that had condo sales in January 2018, the lowest ratio of the average condo price to the median one-person household income was 7 in Milton and Clarington.
Naturally, the highest condo price to median one-person household income was in Toronto Central, at 16, where the average condo was $616,322 compared to the median one-person household income of $38,018.
The best five regions for single condo buyers (condo price to one-person median income ratio is 7 or under):
Milton: 7 (average condo price $393,429, median one-person income: $54,184)
Clarington: 7 (average condo price $313,997, median one-person income: $46,277)
Ajax: 8 (average condo price $376250, median one-person income: $46,407
Brampton: 8 (average condo price $347677, median one-person income: $41,735
Whitby: 8 (average condo price $369075, median one-person income: $44,566)
The worst six regions for single condo buyers (condo price to one-person median income ratio is 11 or higher):
Toronto Central: 16 (average condo price $616,322, median one-person income: $38,018)
Markham: 12 (average condo price $495,439, median one-person income: $40,480)
Richmond Hill: 12 (average condo price $439,237, median one-person income: $37,862)
Vaughan: 11 (average condo price $443,914, median one-person income: $40,964)
Toronto West: 11 (average condo price $434,178, median one-person income: $38,018)
Oakville: 11 (average condo price $527,214, median one-person income: $48,604)
With Mississauga sitting at 10, it's not an easy place to buy solo in, but it's also not Toronto (or Oakville, for that matter).
If you do manage to save up to purchase a condo for just you, yourself and…you, note that you probably won't regret it. There's nothing better than being the king or queen of your own castle, even if that castle is only 500 sq. ft.
- It Will Take Median-Income Earners 32 Years to Save Average House Downpayment
- What you need to save to a buy a home in Mississauga on a median income
- House price increases rapidly outpacing income growth in Mississauga
- Single-home buyers and condo living on the rise; here's what you need to earn in Mississauga
- Here’s Where You Can Buy a Home if You Make Less Than $50,000 a Year