Toronto is more expensive than New York and Miami

Housing markets in both Canada and the United States are affected by rising interest rates and a lack of supply, but Canadians are particularly hard hit because of lower median incomes and less purchasing power than Americans.

Vancouver and Toronto are even more unlivable than other major U.S. cities like New York and Miami, according to a new report from Zoocasa, based on median household income and national median home prices.

For example, in 2021, the median household income in the United States was about C$102,777 (US$75,149), while in Canada, the median household income was about C$73,954 (US$54,074). This difference is even more evident when looking at the national average house price. In 2022, when home prices hit record highs in both countries, the median home price in Canada was still $30,000 higher than in the U.S., even though the median income of Canadians was $20,000 less.

To determine the level of housing affordability in 40 cities across North America (28 cities in the United States and 12 cities in Canada), Zoocasa analyzed the median home price, median income and maximum affordability in each city.

Although Toronto's median income is comparable to Dallas, with Toronto at (US$) $62,963 and Dallas at $63,985, the median home price in Toronto is $718,519, compared to much lower in Dallas ($393,650).

"This results in a gap of only $107,093 between maximum affordability and the median home price in Dallas, while in Toronto, the gap is more than three times that of Dallas," the report notes. Households making the median income in Toronto can afford homes worth about $355,892, which is $362,627 less than the median home price.

Vancouver has the third largest gap between maximum affordability and median home price, surpassing Toronto as Canada's most expensive real estate market. Vancouver households with a median income less than half that of San Francisco can afford a home worth about $332,863, about $543,656 less than the benchmark price.

news source