Here's the salary you need to afford a home in several Ontario cities right now

A new affordability report suggests that for many hopeful buyers, homeownership in some Ontario cities, like Toronto, remains well out of reach, especially for single earners.

A 2024 survey by Scotiabank found that more than half of non-homeowners aged 18 to 43 were determined to purchase a home within the next five years, however, a recent analysis conducted by real estate agency Zoocasa highlights just how steep financial barriers remain in 2026, even for those earning more than the median income in Toronto.

The real estate agency analyzed nearly two dozen markets across Canada based on actual take-home pay to determine where individuals earning between $55,000 and $85,000 could realistically buy a home in 2026.

Zoocasa

In markets where the average home price is below $500,000, the study applies a $100,000 down payment, and for areas above $500,000, a 20 per cent down payment was used instead. Monthly mortgage payments were calculated using current-rate conditions and compared with the approximate after-tax incomes of $55,000, $65,000, $75,000, and $85,000.

Mortgage payments were determined using the Ratehub mortgage calculator, assuming a fixed rate and a 25‑year amortization.

Source: Zoocasa.

As expected, a $55,000 to $65,000 salary range makes dreams of homeownership plausible in only a few select cities, factoring in careful budgeting and accepting that housing will eat up a large share of after-tax income.

In the GTA, homeownership is not realistic for all four tiers of income levels included in the study, as the average monthly mortgage of $4,301 represents more than 76 per cent of net income. "Even with a significant down payment, the monthly carrying costs in these markets typically exceed what any standard guideline would consider sustainable for one person," the report notes.

"A typical home still requires the majority of a single buyer's net income, highlighting just how challenging it can be for a single-earner family."

However, there are a few Ontario cities where homeownership is more realistic for low to middle-income single earners.

Thunder Bay's average monthly mortgage payment of $1,597 may be realistic, but remains "stretched" for $55,000 to $75,000 income groups, where it would account for roughly 31 to 50 per cent of their income. For those earning $85,000, the same payment is considered "comfortable," representing up to 30 per cent of net income.

In Windsor-Essex, the monthly mortgage payment of $2,249 is considered "highly stretched" for those earning between $55,000 to $65,000 per year, and "stretched" for those bringing in between $75,000 and $85,000.

Zoocasa

It's also a similar story in the Niagara Region, London, and St. Thomas, where the monthly mortgage payment hovers around the $2,600 mark, and is considered "highly stretched" for most low to middle income groups.

In Hamilton, the monthly mortgage amount of $3,457 is considered "not realistic" for those earning between $55,000 and $65,000, and "highly stretched" for those earning between $75,000 and $85,000.

As the study notes, there are still pockets in Ontario where you can buy a home for under $500,000, including in Thunder Bay and Sudbury, which boast average home prices of $378,030 and $470,819, respectively.