GTA home prices rose by more than most residents' annual income in 2022
A recent real estate report looked at how home prices increases in the Greater Toronto Area compared to residents' after tax income. THE CANADIAN PRESS/Richard Buchan
Published Saturday, April 15, 2023 12:25PM EDT
In 2022, the majority of the Greater Toronto Area (GTA) saw home prices go up by more than what most residents make in a year, according to a recent real estate report.
Zoocasa, a Canadian real estate website, looked at 30 real estate markets across the GTA in 2022 to see how fluctuations in home prices compared to how much residents earned after tax. From there, the report compared how home prices increased relative to household earnings.
The report looked at home prices from the Toronto Regional Real Estate Board and looked to Statistics Canada for after-tax household incomes. The home price change was calculated by comparing 2021 to 2022 figures, the report notes.
Twenty of 30 real estate markets in the GTA saw house prices go up by more than half – between 50 to 75 per cent – of the median income in each.
In Toronto, home prices rose by nearly 90 per cent of the median income of residents, which is $74,000 after tax.
Homeowners living in east Toronto saw the highest increase in comparison to income of almost 100 per cent, while central Toronto saw the smallest difference at just over 71 per cent.
The report notes Richmond Hill and Scugog saw an increase in house prices of more than 100 per cent of the median income, which are the only two spots in the GTA to see such steep changes.
In Richmond Hill, where the median income is $89,000, home prices jumped by $91,706 in 2022, which is about 103 per cent of residents’ earnings. Meanwhile, in Scugog, home prices increased by $133,063 – nearly a 145 per cent jump from the median income of $92,000.
According to the report, there were only three areas in the GTA that saw house prices decline year-over-year: Caledon, King and Uxbridge. The latter saw the biggest drop, with home prices going down by $63,115, or about 64 per cent of the median income.