'A beautiful soul': Funeral held for baby boy killed in wrong-way crash on Highway 401
A funeral was held on Wednesday for a three-month-old boy who died after being involved in a wrong-way crash on Highway 401 in Whitby last week.
With the skyrocketing home prices and increasing mortgage rates, new data from Point2Homes suggests that a significant number of renters in Canada's major cities are unable to afford a starter home.
According to data published on Tuesday, renters in 36 of Canada's 50 largest cities earn 60 per cent less than required to own a starter home. In 11 of these cities, starter home inventory is zero, with 26 more cities displaying shares of starter homes below 10 per cent.
Starter homes, also known as entry-level homes, are traditionally small in size and priced around $200,000. However, the concept of a starter home has changed in today's pricey housing markets.
Now, according to Point2Homes, a starter home simply refers to the first home a person owns, regardless of its size or price—its definition is determined by the current market conditions.
For its report, the platform looked at renter household income in Canada's 50 largest cities and designated starter homes to be valued at half the respective city's benchmark price to determine where they could switch to homeownership.
According to the report, 75 per cent of renters residing in 36 of the cities are unable to afford a starter home under this definition.
Due to the sharp increase in prices, Point2Homes’ report shows, Canadian starter homes now cost more than $500,000, and in three cities, more than $700,000.
Renters in 12 cities in Ontario earn 42 to 59 per cent less than the amount needed to buy a starter home.
For instance, renters in Richmond Hill, Oakville, Markham and Vaughan make an average of $70,000 annually, and would need around $160,000 to $170,000 to afford a starter home in their city.
These are the 36 major Canadian cities where renters can't afford a starter home, according to Point2Homes:
1- Richmond Hill, Ont.
2- Oakville, Ont.
3- Markham, Ont.
4- Vaughan, Ont.
5- Richmond, B.C.
6- Vancouver
7- Toronto
8- Milton, Ont.
9- Whitby, Ont.
10- Coquitlam, B.C.
11- Burlington, Ont.
12- Brampton, Ont.
13- Mississauga, Ont.
14- Burnaby, B.C.
15- Ajax, Ont.
16- Surrey, B.C.
17- Langley, B.C.
18- Oshawa, Ont.
19- Saanich, B.C.
20- Kelowna, B.C.
21- Abbotsford, B.C.
22- Guelph, Ont.
23- Hamilton, Ont.
24- Waterloo, Ont.
25- Cambridge, Ont.
26- Barrie, Ont.
27- Kitchener, Ont.
28- Ottawa
29- London, Ont.
30- St. Catharines, Ont.
31- Montreal
32- Windsor, Ont.
33- Kingston, Ont.
34- Halifax
35- Greater Sudbury, Ont.
36- Longueuil, Que.
Starter home prices are very similar in some cities — such as in Windsor, Ont., and Calgary — but there are big differences in household income. In Windsor, the average renter's household income is $40,241 annually, while in Calgary, it's close to $69,000. Point2Homes’ data shows Calgary renters make five per cent more than the required money to buy a starter home in their city, while Windsor renters earn 48 per cent less than the needed money to buy a starter home in their city.
According to the report, renters in 14 cities across Canada earn more than the income required to buy a starter home in their city.
In these cities, renters earn two to 52 per cent more than the minimum income needed to afford a starter home there.
Among the 10 cities in Canada where renters have the opportunity to purchase a starter home for less than $200,000, Edmonton and St. John's stand out, according to the report. Renters in these cities not only have access to more affordable starter homes, but they also earn 52 per cent and 50 per cent higher than the minimum income required to buy one in their respective city.
These are the 14 cities in Canada where renters in that city can afford to buy a starter home, according to Point2Homes:
1- Edmonton
2- St. John's
3- Regina
4- Saguenay, Que.
5- Trois-Rivières, Que.
6- Quebec City
7- Lévis, Que.
8- Winnipeg
9- Saskatoon, Sask.
10- Gatineau, Que.
11- Calgary
12- Sherbrook, Que.
13- Terrebonne, Que.
14- Laval, Que.
Methodology
For this study, calculations were made based on the median value of starter homes in Canada’s 50 largest cities, which means there could be cheaper/more affordable options on the market.
Starter homes were considered to be the homes valued at half the benchmark price in each of the 50 cities included in the analysis. Rather than a fixed price, Point2Homes chose this method because it better reflects the differences between markets in terms of housing costs, incomes, and housing options.
Point2Homes also looked at renter household incomes in the 50 largest U.S. cities, based on data from the Canada Mortgage and Housing Corporation, adjusted according to Statistics Canada figures.
To calculate the income required to afford the monthly mortgage payments on the median-priced starter home, Point2Homes considered that the monthly mortgage should not represent more than 30 per cent of a renter household income, assuming a 20 per cent down payment was already covered and the loan was made based on a 5.75 per cent, 25-year fixed-rate mortgage.
Point2Homes also took into consideration property taxes, based on various local sources and insurance costs.
A funeral was held on Wednesday for a three-month-old boy who died after being involved in a wrong-way crash on Highway 401 in Whitby last week.
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