How much money you need to earn to afford a home in Toronto?
Canada has been rated as the bubbliest real estate market in the World. That means, if that bubble bursts, here it will make the biggest bang! Many Torontonians have left the city between 2019-2022, more are following due to unnoticeable price drop and not being able to afford the big city any longer. Many recent “studies” say that $16 per hour is enough to be able to live in Toronto! Really? Many of you reading this, know that $16 an hour will only be enough to buy groceries in Canada. What are the real numbers needed in order to live and buy a property in Toronto? We will try to make it as real as possible here.

In reality, the affordability has never been worse! High house prices, high mortgage rates, high inflation and rising unemployment rate has made a very high budget for many Canadians. Toronto prices have migrated into surrounding cities and provinces.
How much you you need to earn to be able to afford a home in Toronto:
The average house price in Toronto is $1,098,200 as of October. 2022, but that price is based on all prices combined, studio condos well as 6 bedroom homes . Taken this into the account , a more precise model needs to be developed to calculate the proper monetary need to afford an house in Toronto.
Square feet cost calculation:
- A 1 bedroom apartment in Toronto costs average $559.000 for 426 sqf. which means (the cost of 1 sqf. = $1312)
2. A 3 bedroom Townhome in Toronto costs average $929.900 for 2 bath and 1200 sqf. , (the cost of 1 sqf. = $774.9)
3. A 4 bedroom Single home in Toronto costs average $1.299.000 for 2 bath and 1600 sqf. (the cost of 1 sqf. = $811.9)
Condo fees per month:
- A 1 bedroom Apartment in Toronto additional monthly cost for condominium fees is: $501
2. A 3 bedroom Townhome in Toronto additional monthly cost for condominium fees is: $428
3. A 4 bedroom Single home in Toronto additional monthly cost for condominium fees is: $0
Property taxes per year:
- A 1 bedroom apartment: $2035
2. A 3 bedroom Townhome: $2844
3. A 4 bedroom Single home: $6534
Mortgage calculation with 25% down, 5,69% rate 25 years amortization:
- A 1 bedroom Apartment monthly: $2605.63
2. A 3 bedroom Townhome monthly: $4344.48
3. A 4 bedroom Single home monthly: $6054.94
Mortgage + Condo Fees + Property Tax:
- A 1 bedroom Apartment monthly: $3276.21
2. A 3 bedroom Townhome monthly: $5009.48
3. A 4 bedroom Single home monthly: $6599.44
READ MORE: Bright future for Canadian Construction Economy in 2023-2024!?
This calculation shows that an annual income for paying the cost of one bedroom apartment in Toronto must be $54.000 or $27.7 hourly, excluding cost for hydro, heating and cost of food and clothing,…..
Annual income needed for 3 bedroom Townhome asks for $73.000 or $37.44 hourly, excluding cost for hydro, heating and cost of food and clothing…..
Annual income needed for 4 bedroom Single home asks for $117.000 or $60.00 hourly, excluding cost for hydro, heating and cost of food and clothing……
Adding the cost of hydro, heating and cost of food, clothing, internet, cell phone and leisure, the annual income for a single bedroom apartment in Toronto one need to have at least $67.000, for 3 bedroom Townhome $92.000 and for a 4 bedroom single home $142.000!
Not a pretty number for many!
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