Home
We wanted to find the most affordable cities in Ontario to purchase a home. Here is some of the criteria we used to find the most affordable homes in Ontario.
Median home price
The median home price was used over the average to make sure home prices were not influenced by expensive home prices in the cities. Since the overall median home price was not available in each of the cities we decided to use the median single-detached home price — which means many of these cities have various styles of homes at even more affordable prices.
Median pre-tax household income
Median pre-tax household income was used to help compare affordability acrosss cities. While some cities have lower home prices, they also have significantly less job prospects and lower median pre-tax houshold income. To compare home prices across cities with ranked these home prices based on the monthly mortgage payments percentage to monthly pre-tax median household income.
Population
We wanted to pick cities with populations of 20K+ to avoid the list filling up with the smallest most remote cities in Ontario. This limit on the population provided us with a list of 84 cities.
Mortgage payment calculation
The monthly mortgage payment is calculated using a 5-year fixed mortgage rate of 4.75%, amortized over 25 years. The total mortgage amount is the home’s price less a 20% down payment. Although none of the homes listed exceed the $1M threshold that mandates a minimum 20% down payment, we chose this base to simplify the calculation which would otherwise need CMHC mortgage insurance to be included.
Top 10 affordable cities to buy a home in Ontario
1. Timmins
Timmins tops the list for most affordable city in Ontario with the median price of a single-detached home at $283,750. With a low home price and a strong median household income, Timmins has the most affordable home with income as a percentage of home price. A monthly mortgage payment on a home in Timmins would be $1,288 which is 16.55% of median household income.
Timmins is located in northeastern Ontario and has a population of 39,676 — which is the smallest city on this list but is still well above our critera of selecting cities with a population of 20K+.
- Median home price: $283,750
- Median household income: $93,410
2. Thunder Bay
Thunder Bay is one of the most affordable places to live in Ontario with a median single-detached home price of $350,050 as reported by the TBREB. It would take 20.92% of the median household income which is $91,131 to purchase a home in Thunder Bay making it the second most affordable city in Canada.
Thunder Bay is located in Northwestern Ontario with breathtaking lakefront views of Lake Superior. Thunder Bay is home to a population of 130,752 as of July 2023 according to Statistics Canada.
- Median home price: $350,050
- Median household income: $91,131
3. Sault Ste. Marie
The third most affordable city in Ontario is Sault Ste. Marie with a median single-detached home price of $345,000. While the median home price in Sault Ste. Marie is lower than that of Thunder Bay — so is it's median household income. It would take 22.30% of your median household income to afford a home in Sault Ste. Marie.
Sault Ste. Marie is home to a population of 70,618.
- Median home price: $345,000
- Median household income: $84,297
4. Sudbury
While the median home price of a single-detached home in Sudbury is the most expensive we have seen on this list so far it has the highest median household income on this list which helps the city rank near the top for affordability. With a pre-tax median household income of $95,688 you would spend 27.04% of your income to purchase a home in Sudbury.
Sudbury is located in Northern Ontario and has a population of 163,563 making it the most populated city in Northern Ontario.
- Median home price: $474,950
- Median household income: $95,688
5. North Bay
North Bay has an affordable median home price of $449,000 which is 28.07% of the $87,144 medain household income.
With a population of 48,366 North Bay has the third smallest population. North Bay is located in Northeastern Ontario.
- Median home price: $449,000
- Median household income: $87,144
6. Sarnia
The median single-deatched home price in Sarnia is $500,000 which when paried with a median household income of $94,549 makes it an affordable option. The monthly mortgage payment for this home is $2,270 a month or 28.81% of monthly pre-tax median household income.
Sarnia has a population of 70,376 and is the largest city on Lake Huron.
- Median home price: $500,000
- Median household income: $94,549
7. Chatham-Kent
The median single-detached home price in Chatham-Kent is $441,500. The monthly mortgage payment on this home is $2,004 which would be 29.53% of monthly pre-tax median household income. This is the last home on the list that has a monthly mortgage payment below 30% — as a percentage of monthly pre-tax median household income.
Chatham-Kent is located in Southwestern Ontario and has a population of 98,490.
- Median home price: $441,500
- Median household income: $81,449
8. Cornwall
The price of a single-detached home in Cornwall is low — with a median price of $415,000. While the median home price is lower than the three previous cities — a lower median household income of $74,614 means that it will take 30.30% of your household income to afford the monthly mortgage payment of $1,884.
Cornwall is located in eastern ontario and has a population of 46,990.
- Median home price: $415,000
- Median household income: $74,614
9. Windsor
The median home price in Windsor is $540,000 which is the second highest home price on this list. With a median household income of $93,410 it woudl take 31.49% of household income to afford the monthly mortgage payment of $2,451 on the median priced single-deatched home in Windsor.
Windsor is has the largest population on this list with a population of 227,657. Windsor is located in southwestern Ontario on the Detroit River which is across from Detroit, Michigan. May of the residents in work in the auto industry.
- Median home price: $540,000
- Median household income: $93,410
10. Kingston
The last spot on this list is Kingston with a median home price of $630,000 — the highest home price on this list. However, with a median household income of $93,410 it takes 31.49% of household income to afford the monthly mortgage payment of 2,451 — which is also the highest mortgage payment on this list.
Kingston has a population of 124,497 which makes it the third most populated city on this list. Kingston is located on the northeastern end of Lake Ontario.
- Median home price: $630,000
- Median household income: $94,549
Sources: CREA, CMHC, WorldPopulationReview