Hamilton’s housing market has been skyrocketing in recent years, reaching heights that feel challenging at best and fully unattainable at worst for the average homebuyer.
Now, thanks to a June 2022 report by RateHub.ca, we have a clearer picture of what a person’s annual income needs to be in order to afford to purchase a home in Hamilton.
Good luck any newcomer planning on living either in Toronto or Vancouver. https://t.co/P4DwMYNWrK
— Everything Matters (@it_matters_2_me) July 25, 2022
According to the report, the average price of a home in Hamilton as of June 2022 is $934,700, and a hopeful homebuyer would need a minimum annual income of $179,060 to afford a home based on a mortgage payment with a 20 per cent down payment.
It’s an income rate that even exceeds the means of countless dual income households, meaning that many couples who both work full-time are nonetheless likely to face considerable barriers to entering the Hamilton housing market.
Though housing prices are lower in June than they were a few months prior, a rise in stress test rates have kept the income needed to purchase a home at a high level.
“In every city, homebuyers require a lot more income to purchase the average home due to higher stress tests caused by increasing mortgage rates,” said James Laird, Co-CEO of RateHub.ca.
“Generally, for every 1% that the stress test increases, a household qualifies for about 10% less mortgage.”
Read the full report here.