Edmonton is the most affordable of major housing markets in Canada, a recent study has found.
RBC Economics released its Housing Trends and Affordability Report. The report measures the percentage of the median household income needed to buy a home in Edmonton.
Edmonton home buyers spend an average of about 29 per cent of gross income to afford an average home in the city. That’s the lowest among major cities, and well below the national average of about 47 per cent. In Edmonton a buyer can find a new home to purchase and still afford the monthly mortgage payments and carrying costs.
If you include the Calgary real estate market, Alberta’s two biggest cities will remain among the most affordable in Canada because of the ongoing energy industry strength that does not appear to be easing anytime soon.
By comparison, Canada’s hottest markets are likely to remain unaffordable to most first time buyers. As the study notes, Vancouver buyers require almost 75 per cent of gross household income to afford a median home. The figure is lower in Toronto, 64 per cent, but still well above the national average.
In Alberta, single-family detached homes continue to be the housing segment of choice because the two major cities are so affordable. That said, Edmonton is the lower cost option.
While income growth has not been as strong as other regions, unemployment is decreasing and has remained low as headwinds to growth in the oil patch are beginning to increase.