Toronto Home Ownership Requires $220k+ Income
The cost of home ownership remains largely unattainable for the majority of Toronto residents. A new analysis indicates that an income exceeding $220,000 is now required to purchase a typical home in the city. This economic reality continues to shape the local business and talent landscape.
- The income required varies significantly by property type, with estimates suggesting a household needs over $230,000 for a detached house, $170,000 for a semi-detached home, and $110,000 for a condo. For a home valued at $1 million, the necessary income is estimated to be between $181,000 and $204,000. - There is a significant gap between the necessary income and what residents earn; the median household income in Toronto is approximately $98,000, far below what is needed to qualify for a mortgage on an average home. - A global report on housing affordability has categorized Toronto as "impossibly unaffordable," with a median multiple score of 9.3, ranking it 11th on the list of least affordable major markets. - The high cost of housing is directly impacting the business landscape, with nearly seven in 10 businesses in the Greater Toronto and Hamilton Area reporting difficulties in attracting talent due to housing costs. A 2025 poll found that 67% of residents believe housing costs are the biggest barrier to business growth in the region. - This affordability crisis is also affecting workforce mobility and productivity. Essential workers face long commutes, with 270,000 commuting over 90 minutes each way, leading to estimated productivity losses of up to $1.95 billion annually. - While Toronto's housing market has seen some recent improvements in affordability due to falling home prices and interest rate shifts, the mortgage payment as a percentage of income remains significantly above historical averages. - Even with minor dips in the average home price, a person earning the median income would need to save for more than 25 years for a down payment on a house and nearly five years for a condo. - Compared to other major North American cities, Toronto is one of the least affordable. A 2021 Oxford Economics report found Toronto to be the second least affordable city, more expensive to live in than New York and Los Angeles.
