A report by Zoocasa.com says housing affordability is relatively healthy in all markets across Alberta as wages have kept pace with home values. An Albertan earning at least the median household income would be able to afford a home in any of the province’s 25 major markets.
To determine home affordability in each city, Zoocasa sourced the average home price as reported by local real estate boards, and calculated (assuming a 20 per cent down payment, a 30-year amortization, and mortgage rate of 3.33 per cent) how much a borrower would need to earn in order to qualify for a mortgage on that home. That calculation was then compared to actual median incomes earned in each municipality as reported by Statistics Canada, says Penelope Graham, managing editor at Zoocasa.
Zoocasa took average house prices from October.
The least affordable cities in the province in order are Canmore, Calgary, Lethbridge, Medicine Hat and Edmonton.
According to Zoocasa, here are the top five most affordable housing markets in Alberta:
1 – Fort McMurray
Average home price: $374,360
Required income: $51,066
Actual median income: $195,656
Affordability surplus: $144,590
2 – Beaumont
Average home price: $408,391
Required income: $55,708
Actual median income: $134,443
Affordability surplus: $78,735
3 – Cold Lake
Average home price: $248,888
Required income: $33,950
Actual median income: $110,575
Affordability surplus: $76,625
4 – Sherwood Park
Average home price: $420,070
Required income: $57,302
Actual median income: $124,239
Affordability surplus: $66,937
5 – St. Albert
Average home price: $414,668
Required income: $56,565
Actual median income: $119,905
Affordability surplus: $63,340
The views, opinions and positions expressed by columnists and contributors are the author’s alone. They do not inherently or expressly reflect the views, opinions and/or positions of our publication.
