A home in Sherbrooke, Quebec.
Finding affordable starter homes for sale in Canada can feel like a cruel joke these days, especially if you live in Ontario or B.C., where the outlook on real estate is undeniably bleak.
According to a recent study conducted by Point2Homes, a whopping 36 out of Canada's 50 largest cities may as well be on Mars for aspiring homeowners, and renters in these cities earn a staggering 60% less than what they need to even think about making that coveted leap into homeownership and buying a starter home. Yikes.
But fear not! Point2Homes also brings a glimmer of hope: in 14 of Canada's 50 largest cities, renters actually earn 2% to 52% more than the minimum income needed for a comfortable starter home. Good news, right? Sort of, because you still have to find a place worth investing in, and finding homes at these price points can leave you with limited options.
Point2Home's study evaluated each city's benchmark price and defined starter homes as valued at half the benchmark price. To ensure affordability, they set a guideline that the monthly mortgage payment should not exceed 30% of the renter's household income.
The study also assumed a 20% down payment and calculated the loan based on a 5.75% interest rate with a 25-year fixed-rate mortgage.
Here's a look at what makes each of these 14 cities 'affordable' and what starter homes (or the closest available option) are for sale in each market right now.
Edmonton, Alberta
11901 69 Street, Edmonton, AB
Starter home price: $185,500
Minimum yearly income needed: $46,483
Down payment (20%): $37,100
Share of starter home listings: 52%
Listing asking price: $174,190
Address: 11901 69 Street, Edmonton, AB
Description: This 900-square-foot property offers four bedrooms and 1.5 bathrooms. It's not much for its price point, but at least it's only a 13-minute drive to downtown Edmonton.
St. John's, Newfound and Labarador
50 Gilbert Street, St. John's, NL
Starter home price: $153,800
Minimum yearly income needed: $37,817
Down payment (20%): $30,760
Share of starter home listings: 50%
Listing asking price: $174,875 (cheapest available)
Address: 50 Gilbert Street, St. John's, NL
Description: This two-bedroom single-family home is located in the heart of St. John's downtown core, so it's definitely not remote. Its kitchen has been completely renovated, so its interior looks a bit more modern than you might expect.
Its exterior is very St. John's in terms of aesthetics: a colourful box that connects to other adjacent properties like a Lego piece. Not unappealing, but certainly a no-go for anyone seeking the privacy of a detached home.
Regina, Saskatchewan
2172 Rae Street, Regina, SK
Starter home price: $155,600
Minimum yearly income needed: $40,894
Down payment (20%): $31,120
Share of starter home listings: 40%
Listing asking price: $190,164 (cheapest available)
Address: 2172 Rae Street, Regina, SK
Description: A 2 1/2-storey home situated in Regina's desirable Cathedral area. This unique property built in 1902 features two separate suites, with a one-bedroom unit on the main level and a four-bedroom suite on the upper level.
The home is a winner in terms of both its aesthetics and location, making it one of the many standouts on this list.
Saguenay, Quebec
2888 Boulevard, St-Jean-Baptiste, Saguenay, QC
Starter home price: $125,680
Minimum yearly income needed: $33,702
Down payment (20%): $25,136
Share of starter home listings: 36%
Listing asking price: $174,900 (cheapest available)
Address: 2888 Boulevard, St-Jean-Baptiste, Saguenay, QC
Description: This four-bedroom, one-bathroom home is bland in terms of its aesthetics. However, it is surrounded by lush greenery, and despite seeming incredibly remote, it's only a ten-minute drive to the heart of Saguenay.
Trois-Rivières, Quebec
3132 Rue de Toulouse, Trois-Rivières, QC
Philippe Beaulieu Boivin | RE/MAX
Starter home price: $133,459
Minimum yearly income needed: $35,775
Down payment (20%): $26,692
Share of starter home listings: 28%
Listing asking price: $199,900 (cheapest available)
Address: 3132 Rue de Toulouse, Trois-Rivières, QC
Description: Quaint and modest this three-bedroom home won't let you flex on your friends. However, its close location to the Trois-Rivières downtown area and its bright interior make it an attractive property for anyone to dip into homeownership sooner rather than later.
Quebec, Quebec City
655 Rue François-Thomas, QC
Starter home price: $159,629
Minimum yearly income needed: $40,763
Down payment (20%): $31,926
Share of starter home listings: 28%
Listing asking price: $285,000 (cheapest available)
Address: 655 Rue François-Thomas, QC
Description: This three-bedroom home is located just across the river from Quebec City. Not only does it offer plenty of indoor space, but it also has a nice big backyard. It's in need of some serious maintenance, but with some hard work, it could easily be turned into the perfect area to host friends and family during the summer.
Lévis, Quebec
2581 Rue Jean-Huard, Lévis, QC
Starter home price: $164,750
Minimum yearly income needed: $41,386
Down payment (20%): $32,950
Share of starter home listings: 26%
Address: 2581 Rue Jean-Huard, Lévis, QC
Listing asking price: $179,900 (cheapest available)
Description: This home is another one with an interior that more than makes up for its dull exterior. Bright and colourful once you step inside, this house features four bedrooms and one bathroom, making it an ideal choice for those looking to start a family.
Its backyard is nothing to write home about, so you may want to hold off on getting a family pet until you have a bit more space. But all in all, it's a fine starter house for its price.
Winnipeg, Manitoba
990 Minto Street, Winnipeg, MB
Starter home price: $168,150
Minimum yearly income needed: $43,989
Down payment (20%): $33,630
Share of starter home listings: 23%
Address: 990 Minto Street, Winnipeg, MB
Listing asking price: $174,875 (cheapest available)
Description: This mini home includes only two bedrooms. However, it also has a heated loft space in its attic, which could easily be turned into a guest room. It doesn't have a second floor, but its full basement could be turned into a recreation area.
Overall, the home is a good choice for buyers who don't mind spending a few thousand dollars sprucing it up and making it cozy.
Saskatoon, Saskatchewan
405 9th Street, Saskatoon, SK
Starter home price: $187,800
Minimum yearly income needed: $47,746
Down payment (20%): $37,560
Share of starter home listings: 18%
Address: 405 9th Street, Saskatoon, SK
Listing asking price: $263,948 (cheapest available)
Description: This 924-square-foot bungalow has charm thanks to its natural wood finishes, gas fireplace and hidden character bookshelves.
The main floor boasts two bedrooms and a newer full bath, while the living room, dining area, and bedrooms showcase hardwood floors.
Gatineau, Quebec
101 2nd Avenue West, Gatineau, QC
Starter home price: $217,935
Minimum yearly income needed: $54,205
Down payment (20%): $43,587
Share of starter home listings: 9%
Address: 101 2nd Avenue West, Gatineau, QC
Listing asking price: $219,900 (cheapest available)
Description: A 2-bedroom mobile home, located on an oversized corner lot. The property offers a large patio, a very spacious shed, and a "little garden corner."
Calgary, Alberta
36 Glamis Green Southwest, Calgary, AB
Starter home price: $275,400
Minimum yearly income needed: $65,339
Down payment (20%): $55,080
Share of starter home listings: 5%
Address: 36 Glamis Green Southwest, Calgary, AB
Listing asking price: $242,649
Description: This 2 bedroom, 2 bathroom home is located in close proximity to the University of Calgary, as well as several shopping centres, and entertainment venues.
Its hardwood flooring and granite counters give it a touch of sophistication. Definitely another highlight property on this list.
Sherbrooke, Quebec
4585 Chem. Saint-Roch North, Sherbrooke, QC
Starter home price: $169,545
Minimum yearly income needed: $43,528
Down payment (20%): $33,909
Share of starter home listings: 5%
Listing asking price: $184,500 (cheapest available)
Address: 4585 Chem. Saint-Roch North, Sherbrooke, QC
Description: If you've always dreamed of living in a French chalet, look no further than this 12,700-square-foot lot. It doesn't hurt that the home is also located within one of Sherbrooke's sought-after neighbourhoods.
Terrebonne, Quebec
2952 Chem. Saint-Charles #19, Terrebonne, Quebec
Starter home price: $229,971
Minimum yearly income needed:$56,746
Down payment (20%): $45,994
Share of starter home listings: 5%
Listing above's asking price: $145,000
Address: 2952 Chem. Saint-Charles #19, Terrebonne, Quebec
Description: Can mobile homes be nice? The surprisingly charming 2-bedroom property is out to prove they can be. Its interior is bright, modern and cozy and its backyard offers fantastic views of the Thousand Islands River. Touche.
Laval, Quebec
8 Rue Lanctôt, Laval, QC
Starter home price: $240,010
Minimum yearly income needed:$58,367
Down payment (20%): $48,002
Share of starter home listings: 5%
Listing asking price: $279,900 (cheapest available)
Address: 8 Rue Lanctôt, Laval, QC
Description: This bungalow, located on a dead-end street, doesn't have the wow factor associated with it. However, its landscaped lot, measuring a total of 8,200 square feet, is surrounded by plenty of greenery, which is a common characteristic of Quebec homes.