Median household income in Hamilton is $88,109 a year. Photo credit: The Globe and Mail
A recent report from the National Bank of Canada on housing affordability states that a household would need to earn $219,514 a year to afford the typical Hamilton home.
The study lists the median Hamilton home price at $933,437, which is actually down 10.8 per cent from 2022.
Nevertheless, mortgage payments would be calculated at $5,201 a month (calculated using a benchmark interest rate and assuming a 25-year amortization period on a five-year term).
Since the Canada Mortgage and Housing Corporation (CMHC) considers housing to be affordable if it costs 30 per cent or less of a household’s pre-tax income, the report concludes that a household would need to earn $219,514 a year to be able to truly be able to afford mortgage payments.
However, the median household income in Hamilton is $88,109 a year, so mortgage payments for those earning a median household income would take up 70.8 per cent of a household’s salary.
The study also calculates the amount of time it would take for a typical household to save up for a down-payment on a home.
The typical down-payment on a house in Hamilton is listed at $68,344.
Given that the median household income in Hamilton is $88,109 a year, the study posits that it would take the typical Hamilton household 93.1 months (7.8 years) to save for a down-payment on a home (assuming a 10 per cent saving rate).
In terms of condos, the study lists the median Hamilton condo price at $671,694, which is down 2.9 per cent year over year.
Monthly mortgage payments are $3,742 for the typical Hamilton condo and a household would need to earn $159,739 a year in order to keep mortgage payments below 30 per cent of their income.
For those earning the median amount, mortgage payments would take up 51 per cent of their income per month.
The typical down payment for a condo in Hamilton is calculated at $42,169 and would take 57.4 months (4.8 years) of saving for those earning the median Hamilton household income.
The study also lists the average monthly rent for a condo in Hamilton at $2,095 per month.
The report also analyzes nine other Canadian cities: Toronto, Montreal, Vancouver, Calgary, Edmonton, Ottawa/Gatineau, Quebec, Winnipeg, and Victoria.
Here’s how those cities stack up in comparison to Hamilton:
Median House Prices
Vancouver – $1,587,439
Toronto – $1,163,670
Victoria – $1,138,904
Hamilton – $933,437
Ottawa/Gatineau – $703,112
Calgary – $612,630
Montreal – $542,354
Edmonton – $461,563
Winnipeg – $385,507
Quebec City – $354,445
Typical House Down-Payment
Vancouver – $317,488
Toronto – $232,734
Victoria – $227,781
Hamilton – $68,344
Ottawa/Gatineau – $45,311
Calgary – $36,263
Montreal – $29,235
Edmonton – $23,078
Winnipeg – $19,275
Quebec City – $17,722
Typical House Monthly Mortgage Payment
Vancouver – $8,844
Toronto – $6,483
Victoria – $6,345
Hamilton – $5,201
Ottawa/Gatineau – $3,917
Calgary – $3,413
Montreal – $3,022
Edmonton – $2,572
Winnipeg – $2,148
Quebec City – $1,975
Monthly Average Condo Rent
Toronto – $2,708
Vancouver – $2,507
Victoria – $2,456
Hamilton – $2,095
Ottawa/Gatineau – $2,087
Calgary – $1,678
Montreal – $1,523
Edmonton – $1,409
Winnipeg – $1,327
Quebec City – $1,200
Based in Hamilton, he reaches hundreds of thousands of people monthly on Facebook, Instagram, TikTok, and Twitter. He has been published in The Hamilton Spectator, Stoney Creek News, and Bay Observer. He has also been a segment host with Cable 14 Hamilton. In 2017, he received the Chancellor Full Tuition Scholarship from the University of Ottawa (BA, 2022). He has also received the Governor General’s Academic Medal. He formerly worked in a non-partisan role on Parliament Hill in Ottawa.
