You need income of about $200,000 to buy a house in York Region: report

YorkRegion.com
Aug. 17, 2017
Lisa Queen

You need a salary approaching $300,000 if you hope to buy a home in King Township, the most expensive community in the Greater Toronto Area, according to a new report.

But even in the rest of the GTA, a six-figure household income is required to purchase a house, especially in York Region where an income in the neighbourhood of $200,000 is necessary.

“We wanted to arm consumers with some very specific information to assist in their home search journey,” said Enzo Ceniti, Realtor and director of training and development at real estate brokerage TheRedPin.

“When looking at just home prices, it can be hard to grasp exactly how much you need to earn to be able to invest in a home.”

In King Township, you need an annual household income of $264,000 to be able to afford a mortgage of $5,883 and other expenses on a house with an average price of $1.6 million.

If you are looking to buy a house in Aurora, where the average price is $1.13 million, you need a household income of $197,913 to afford the mortgage of $4,280 and other expenses.

In Markham, a household income of $191,250 is needed to afford the mortgage and other expenses on a house with an average price of $1.117 million.

Newmarket is a bit more affordable. To buy a house with an average price of $965,636, you have to pull in a household income of $169,388 to afford the mortgage of $3,652 and other expenses.

Home ownership is pricey in Richmond Hill, where the average house price is $1.066 million, requiring a household income of $213,113 to afford the mortgage of $4,713 and other expenses.

In Vaughan, you need an annual household income of $195,000 to be able to buy a house at the average price of $1.141 million. You’ll be spending $4,320 on your mortgage and other expenses.

The average house price in Whitchurch-Stouffville is $1.185 million, meaning you need a household income of $202,200 to afford the monthly $4,482 mortgage and other expenses.

In East Gwillimbury, your household income needs to be $175,313 to afford a house at the average price of $1,015 million. That works out to $3,841 for your mortgage and other expenses.

The report did not provide information for Georgina.

Meanwhile, a new report from Royal LePage, said “peak millennials” aged 25 to 30 have a strong desire to buy a home but are facing challenges to getting there, from high prices in urban markets to job uncertainty in other communities.

With peak millennials as a group now reaching their late 20s, the number of people aged 25 to 30 is projected to increase 17 per cent in 2021 compared to 2016, Royal LePage said.

“Whether they choose to buy or rent, peak millennials will inevitably shape the housing market due to their sheer volume," president Phil Soper said.

“We expect demand from this demographic to put additional pressure on entry-level housing and investment properties being used to supplement the limited inventory of purpose-built rental buildings."