Study Finds It Would Take Decades to Save for a House in Halton Region

Real Estate News / Thursday, November 28th, 2019

By: Zoocasa

It would take at least 20 years for more than half of households to afford to buy a single-family home in Halton region, according to a recently released report by Zoocasa.

The Halton Region, which is located in the Greater Golden Horseshoe area of southern Ontario, contains some of the most-sought suburbs in the 905-area markets. The cities of Oakville, Burlington, Milton and Halton Hills are particularly popular with families and have maintained their small town charm. However, the area has become increasingly unaffordable in recent years as spillover from home buyers priced out of Toronto has pushed prices through the roof.

How Much Mortgage Would a Median-Income Household Qualify For?

The report calculates the median income of households in the Halton region and determined the maximum mortgage amount those households would qualify for. Based on average real estate prices of that area, it was then calculated how many years it would take to come up with the necessary down payment. 

The data takes into account the Oakville the median household income of $113,666, and average price for detached Oakville houses for sale, at $1,225,000. An affordable mortgage for a household with that that income is $434,333, at 3% over 25 years, plus 1% of the home’s cost for property taxes and a $100-heating bill, meaning households need to finance come up with a 65% down payment, or $790,667. If households save 20% of their salary a year it would take a full 34.8 years to come up with the cash. 

Burlington, Milton More Affordable, But Still With Lengthy Savings Timelines

Meanwhile, Burlington real estate is slightly more affordable with the average single-family home priced at $918, 500. However, the city’s median household income is also lower, at $93,588. The maximum mortgage such a household qualify for at that income is $367,307, meaning a 60% down payment is necessary to make up the difference. It would take households just under 30 years to save 20% of their income and stash away $551,193.

Milton, even five years ago or so, was a booming, sprawling suburb with tons of new development and the perfect place for young families to settle into. But its popularity proved perhaps too great, as prices have skyrocketed and Milton homes for sale reached an average of $870,000. The median income is a healthy $103,730, but the maximum mortgage affordability is still just $435,249. Households must make up the shortfall with a 50% down payment of $434,751. It would take just over 20 years to do so.

Condos A More Realistic Option For Many Home Buyers

Since few families are going to save 20 to 34 years to save up for a down payment, (and by then prices will have changed anyway) it really puts them in a bind. One option is moving into a less expensive housing type, such as condos, which are far more affordable in the Halton region than detached options. It would only take households making the median amount about a single year to save up a 5% down payment and still afford to finance the rest. 

Want more information on affordability in the Halton Region? Check out the infographic below:

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