Toronto, Vancouver and Hamilton now rank among North America’s most expensive cities according to a new report by Oxford Economics.
According to the study, housing in Canada was 34% more expensive than the median-income household could afford.
“Of the 25 North American metros for which we’ve built [Housing Affordability Indices], Toronto, Vancouver (BC), Hamilton (Ontario), San Jose (CA), and Los Angeles are North America’s five least affordable metros,” the report reads.
“Hamilton and Ottawa have joined the ranks of Canada’s least affordable metros, while homes in the Prairies and Quebec remain within reach of local households.”
Toronto was ranked the most expensive, being 67% more expensive than the median-income household could afford. Vancouver, Hamilton, Ottawa and Montreal were also in the top 10.
Conversely, Edmonton, Calgary and Quebec City rank among the most affordable.
The study concludes that housing in the United States is much more affordable than Canada.
Housing prices reached new highs this year, with the average price rising 31.6% from March 2020 to March 2021. The average price of a home in Canada is now $716,828.
The rapid rise in housing prices have been attributed to Canadians trying to flee coronavirus hotspots and also people who work from home looking for better locations. Demand has also been encouraged by low-interest rates.