An average household income of $221,829 is needed to buy a home in Guelph.
A report from HelloSafe, a finance and insurance website outlined a home with 1,500 sq/ft in Guelph would need an owner’s income to be over $200,000. This breaks down to $631 per sq/ft.
The data collected is for June 2023. The calculation is based on an Ontario mortgage loan with a five to 20 per cent contribution at a five year fixed rate of 4.89 per cent over 25 years.
In Ontario the average gross annual income is $175,491 to purchase a 1,500 sq/ft home.
Guelph is mid-range compared to the most and least amount of annual income needed to purchase a 1,500 sq/ft home. Toronto is at the top with an average $591,828 annual income to purchase a 1,500 sq/ft home and Timmins is at the bottom with an average $64,896 annual income.
“Ontario's real estate market has reached unprecedented heights, with soaring prices that have left both experts and aspiring homeowners astounded,” said Alexandre Desoutter, editor-in-chief of HelloSafe Canada, in a news release.
She said limited housing supply, demand fueled by population growth and low interest rates are contributing factors to cause property values to rise.
“This has resulted in a challenging landscape for buyers, particularly first-time purchasers, who face formidable barriers to entry,” Desoutter said.
“The high real estate prices in Ontario not only underscore the pressing need for innovative solutions to increase housing supply but also highlight the urgent necessity for comprehensive policies aimed at fostering affordability and equitable access to housing for all residents,” she said.
The average home price in Guelph is $910,257 a drop of 16.3 per cent year-over-year according to The Canadian Real Estate Association, as previously reported by GuelphToday.
