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Navigating Canada’s Housing Market: The Best and Worst Cities for First-Time Buyers
November 27, 2024 | Posted by: Angela Robinson
Buying your first home in Canada can feel overwhelming. With soaring property prices, rising rents, and the challenge of saving for a down payment, it can seem like an unattainable goal. But the good news is, the situation isn't the same across the country.
Affordable Cities for Renters and Buyers
Some cities in Canada are more affordable than others, offering better opportunities to save. Quebec City ranks as one of the best options, with one-bedroom rent averaging just $911, meaning residents spend only 21.6% of their income on housing. This low cost allows them to save for a down payment in under 3.5 years. Montreal and St. John's, NL, also offer great affordability with reasonable rents, making them ideal for saving towards homeownership.
Edmonton: An Affordable Option in Alberta
Edmonton is another city worth considering. While not as inexpensive as Quebec City, Edmonton offers a relatively lower cost of living compared to cities like Toronto and Vancouver. One-bedroom rent averages around $1,100, and the average household income in Alberta is higher than the national average. This creates an affordable balance, making it easier for Edmonton residents to save for a home without as much financial strain. With its growing economy and job opportunities, Edmonton offers an appealing choice for prospective homebuyers.
The Costly Challenge of Major Urban Centers
On the other end of the spectrum, Toronto and Vancouver are the least affordable cities for renters and buyers alike. In Toronto, renters spend nearly half of their income on rent, and in Vancouver, the situation is similar, with almost 46% of the average income going toward rent. The high cost of renting in these cities means it will take over a decade to save for a down payment. In Vancouver, it's estimated to take around 13.5 years.
Fastest Home Deposit Savings
Some cities offer faster savings for homebuyers. Regina and Winnipeg have shorter savings timelines, with Regina residents able to save for a down payment in just 42 months. If you're looking for a quicker path to homeownership, smaller cities like these are a good bet.
Conclusion: Location Matters
Where you live can significantly impact your ability to save for a home. Edmonton and other smaller Canadian cities can offer affordability and quicker savings potential compared to major urban centers like Toronto and Vancouver. While big cities may be appealing, the financial reality of saving for a home in these areas may require years of sacrifices. If you’re serious about owning a home sooner, contact us for help and consider exploring affordable cities in Alberta and across Canada.
