Some people I know love to move to Ontario, especially to the wonderful city of Toronto due to the employment opportunities, the happening nightlife, and to chill near beautiful beaches during summer. Moreover, they are even ready to face the high cost of living, inflated costs, and the biggest problem of them all, the housing market!
I suppose they want to live life to the fullest.
However, there are a few other people in my circle, who would love to enjoy life in the city while finding the cheapest place to live.
The cheapest place to buy a house in Ontario would be Pembroke
Pembroke is one of the most affordable cities in Ontario. It is a city in the Canadian province of Ontario. It is located in Renfrew County, along the Ottawa River.
Pembroke’s population was 18,621 at the 2016 census making it the second largest city in Renfrew County. The city of Pembroke is geographically larger than any other community in Renfrew County and only slightly smaller than Smiths Falls.
It is a beautiful and affordable place to live in. One of the reasons for this is that the houses here are not as expensive as in other places. The average price of a house in Pembroke city is around $200,000 which is much lower than in some other cities.
Thunder Bay (Another cheap place to live in Ontario)
If you are looking for a city with a higher population and a slightly better lifestyle, Thunder Bay is another place to consider. During the summer, the city is so beautiful and happening. The housing market in the city is affordable to any other city in Canada. The average home price is around $320,000.
This city is ideal for any business owner because the city supports local businesses.
The above two cities would be perfect for first-time buyers as the average price of a house is very high in this province.
Why are housing prices so high in Ontario?
It’s hard to buy a home in Ontario because of the supply shortage. We have had it for years!
Back in 2018, demand for housing increased for multiple reasons but the housing supply in many large cities did not respond to demand.
I spoke to one of the construction workers who live in Canada. He says the main issue is too much time is spent by the municipalities to approve building permits mainly because communities have too much say on what to build in their neighborhoods.
Why isn’t Ontario building more houses?
As of now, there aren’t enough builders and on top of that, the larger cities make it illegal to build even though Ontario has lots of lands to build on. One reason could be the Greenbelt, but more than 40% of Toronto’s residential land is zoned so that only single detached homes can be built on it, and in some places where 4plexes used to exist, demolishing it and building a single-family home is easier than demolishing a single family home next door and demolishing another 4plex.
Another reason is the communities residing in a neighborhood. They are against the idea of building new houses in their area as they think the value of their house might go down.
Projects are sometimes shelved because they take too long to complete, resulting in a loss.
What salary do you need to buy a house in Ontario?
It depends. The best way to approach this is by reaching out to a mortgage broker. But generally, it’s better to go for a property that is 4-5 times your average income.
Another option would be to use an online mortgage calculator.
A mortgage affordability calculator is an online tool that helps you estimate the amount of money you can afford to spend on your monthly mortgage payment.
This calculator will help you figure out what size home you can afford based on your income and the amount of money you have for a down payment.
It will also help you figure out if the home is within your budget.
Other Affordable cities to consider
The following are some of the other cities to consider. The housing prices in these cities are fluctuating a bit lately. Therefore, It is better to do some thorough research before making any decision.
Windsor
The city is located on the Canadian border with the United States, making it an easy commute for those who work in Detroit or Chicago. Windsor has many great schools, parks, bike lanes, and recreational areas to explore. The real estate market in Windsor is pretty reasonable compared to any other province in Canada.
According to the June report, the average sales price was $607,704. This is the lowest level recorded so far this year. In comparison, the second lowest average sales price this year was $636,422 in January. However, the average sales price increased by 9% compared to June 2021, when it was $556,290.
Sudbury
Sudbury is a city in Northeastern Ontario, Canada. The city is located on the banks of the Capreol and Wahnapitae Rivers in an area of rich boreal forest and agricultural land. The cost of living in Sudbury is also lower than most other cities in Canada, with a low cost of groceries, rent, and utilities. The average house prices are around $400,000 which is much cheaper than the national average.
Barrie
Barrie is one of the most affordable places to live in Canada. It is a city in Ontario and it has a population of about 145,000 people. The average price of a home is $350,000 and the average cost of living per month is $2,500. This makes Barrie one of the cheapest cities to live in in Canada because there are not many other cities that have such low costs of living.
Guelph
Guelph is last among Ontario’s top ten cities in terms of population. However, because it is close to Toronto (1st on the list) and Kitchener (4th on the list), visitors seeking a city experience do not have to travel far.
Furthermore, the city has one of the lowest unemployment rates in the country, standing at 4.1%, making it excellent for someone looking to start a career in a new place. Finally, Guelph is close enough to experience smaller, local markets as well as visit southern Ontario and its natural beauty.
However, the latest report from CREA (Canadian Real Estate Association) shows that the average price of homes sold in December 2021 was a record $1,063,530.
Kingston
However, the reason I have listed this, in the end, is that recently a friend of mine told me that the housing market has gone up in Kingston. Being a first-time home buyer she found it really hard to find a decent property with a good price.
Kingston, famously known as the Limestone city, lies on the shores of Lake Ontario. Buying a house in Kingston would be a smart move because you can go on vacation easily as it is located near Toronto, Ottawa, and Montreal. The cost of living is pretty reasonable. A family might need around $4600, whereas $2400 is enough for a single person.
Conclusion
The Canadian real estate market has been through some turbulent times in recent years. The prices have been rising and falling unpredictably, and there are more risks for buyers and sellers to consider than ever before. Nevertheless, I hope this blog has given you the answer you are looking. I hope you will be able to find the house of your dreams.