An interesting new study from Zoocasa.com shows exactly the amount one needs to earn in order to truly afford a home in either Mississauga and Brampton in 2018 and it shows that there is a marked increase in the amount one needed to earn in 2018 compared to the previous year.
The study looked at 29 neighbourhoods and compared monthly sales tracking data from the Toronto Real Estate Board (TREB) for the first 10 months of the year in 2017 and 2018.
Assuming a 20 per cent down payment and 30-year mortgage amortization period, Zoocasa ranked 29 neighbourhoods in Brampton and Mississauga based on the increase in annual income required to purchase a home in each.
The study used the average prime interest rate through the first 10 months of 2017 and 2018, respectively, to calculate required income this year compared to last.
The biggest jump came in the Glen Leven, Lorne Park area of Mississauga, which saw a $37,245 year-over year spike in required minimum income. The average dwelling in that neighbourhood could be had at an annual household income of $171,492 based on an average home price of $1,257,193 in 2017.
Just one year later, according to Zoocasa’s calculations, the same average house would require an annual income of $208,737 based on an average home price of $1,490,831.
Now the more affordable neighbourhoods a more modest $6,519 in additional income would be required per year in 2018 compared to last year in the Alloa, Brampton West area. Last year, a home in that area of Brampton could be had for an average of $720,641 at an income of $98,301. This year the same home would cost $748,643 and would require a minimum annual income of $104,820.
The average annual wage increase required to buy a home across all 29 neighbourhoods Zoocasa looked at comes out to $15,852. -CINEWS