In the last couple of years, especially in the wake of the pandemic, real estate properties have seen an incredible surge in prices in Ontario alone! Residents have preferred living in rural and suburban areas instead of near big cities so they can enjoy working from home (WFH).
In March of 2021 alone, the residential sales activity in Ontario accounted for more than 32,748 units which was an 84.3% increase. It also set a new record for the highest real estate sales in any month in history, if you can believe it.
So, now, new buyers all over Ontario are on a hunt to find affordable properties that they can purchase, whether to move up the chain or downsize.
According to Zolo, a leading online marketplace for potential homebuyers, some data is to be analyzed. They found that the most crucial element in buying a home is affordability. To figure out the most affordable cities to buy real estate in Ontario, Zolo examined the average income of each city and then compared it to the average cost of a single-family home. They then obtained the home-to-price ratio, which helped determine how long it would take for buyers to pay off the entire house they purchased. Suppose a home has a home-to-price ratio of 8.3, then it means that it would take the average homeowner a little over eight years to pay off the entire house.
Thankfully, there are still some incredible options in the province for new buyers. So let’s get into it.
Top Five Affordable Large Cities
- Windsor: 98.56
- London: 97.49
- Barrie: 97.06
- Kanata: 96.92
- Guelph: 96.22
Windsor happens to be the most affordable large city in all of Ontario as it has houses as cheap as $534,000 with a median household income of $82,840.
Top Five Affordable Medium-Sized Cities
- Sarnia: 99.15
- Thunder Bay: 98.58
- Sudbury: 96.54
- Stoney Creek: 96.84
- Sault Ste. Marie: 96.52
As far as the most affordable city goes, it would have to be the southwestern city of Sarnia, which has homes as cheap as $358,000 with a median home income of $91,592.
Top Five Affordable Small-Sized Cities
- Deep River: 93.46
- Rainy River: 91.62
- Smooth Rock Falls: 90.60
- Englehart: 88.93
- Marathon: 88.91
Deep River, situated along the Ottawa River, happens to be one of the most affordable small-sized cities in Ontario for real estate. The average cost of a house in the Deep River is $217,000, and the median household income is $100,343.
To make your next real estate investment decision easier, contact us at Martin McFarlane. Our experts can easily help you navigate the troubled waters of the real estate world and make a decision that benefits you and your family long-term.